BYD, the Chinese Communist Party’s (CCP) major automaker, is building a new factory in Mexico with the sole purpose of flooding the U.S. market with cheap electric vehicles (EVs) while avoiding U.S. tariffs on China. It is reported that they are planning to do so.
According to Japanese media “Automotive News” reportBYD plans to build a new EV factory in Mexico to allow the company to export and sell cheap cars to the United States without imposing tariffs on China.
“China’s BYD plans to open a new electric vehicle factory in Mexico. The EV maker aims to establish an export base to the United States,” Automotive News reported.
In Mexico, auto workers often obtain $3 to $3.25 per hour. Taking advantage of Mexico’s low wages, BYD aims to build cheap EVs that are highly competitive with those made in the United States by Tesla, General Motors (GM), and Ford.
Last month, Tesla CEO Elon Musk warned lawmakers that the U.S. auto industry would be decimated unless the U.S. imposed steep tariffs on foreign-made cars.
Chinese car companies are the most competitive car companies in the world. So depending on what kind of tariffs and trade barriers are put in place, I think we could have great success outside of China…Frankly, I think: If trade barriers were not established, most other businesses in the world would be destroyed.” [Emphasis added]
China has already overtaken Japan and become the world’s largest exporter of automobiles. Similarly, BYD became the world’s largest seller of EVs, beating out US-based Tesla for top honors.
John Binder is a reporter for Breitbart News. Please email jbinder@breitbart.com. Follow him on Twitter here.
