Many industrial giants such as GM (GM.US) and Intel (INTC.US) are discussing the transfer of production chains from Asia to Mexico

The Zhitong Finance App learned that in order to reduce imports to Mexico from Asia and increase domestic manufacturing, Mexico's Deputy Minister of Industry and Trade Vidal Llerenas is in negotiations with several industrial giants, including General Motors (GM.US), Foxconn, and Intel (INTC.US), to begin producing products locally.

Llerenas recently said in an interview that GM and Foxconn are expected to announce plans later this month to replace products made in Asia with products made in Mexico, adding that the Mexican government is also currently in negotiations with Stellantis (STLA.US) and DHL. Intel is already planning to replace 12% of its products shipped to Mexico to begin local production.

According to industry data, 40% of the total number of cars imported from Mexico come from Asia. Among them, GM is the largest importer, with 65% made in China, followed by Volvo (VLVLY.US), accounting for 54%. Of the cars imported by Ford (F.US) to Mexico, 24% are made in China.

Just in 2022, GM also called it “the most convenient thing” to move the production of the Chevrolet Onix from Mexico to China and then export it back to Mexico instead of importing the Brazilian-made Onix into Mexico. Production of other models for the Central American market has also moved from Brazil to China instead of being manufactured in Mexico.