The firm’s arrival in Mexico was confirmed early Tuesday by President Andrés Manuel López Obrador, who said he signed the deal with Musk during a phone call on Monday.
“We brought an investment of about $5 billion to Mexico to install the world’s largest electric vehicle factory.“Later explained Marta Delgado, vice chancellor for multilateral affairs and human rights.
The Vice Chancellor traveled to Austin, Texas, to attend Musk’s announcement of his 2023 investment plan.
Monterrey and water scarcity
Tesla will be installed in the Monterrey metropolitan area, the capital of the state of Nuevo Leon, which is constantly suffering from water shortages, but The firm promised to look into the problem, the left-wing president assured.
“This will mean significant investment and many jobs,” Lopez Obrador said at a morning press conference.
President López Obrador has confirmed that Tesla, Elon Musk’s company, will build a car factory in Mexico, which will be located in Nuevo Leon.
Learn more at: https://t.co/I2p8l6B8WQ. pic.twitter.com/MdRhu3ZAcy— Joaquin Lopez-Doriga (@lopezdoriga) February 28, 2023
Capital to be injected Tesla will become one of the largest registered in recent years in the countrywhich in 2022 added $35.292 million in foreign direct investment, according to preliminary estimates from the Mexican Foreign Ministry.
The president paid special attention to the problem of water, a chronic problem in various states in the north of the country. In 2022, Nuevo León authorities were forced to restrict supplies due to a prolonged drought.
Musk “understood the importance of addressing water scarcity (…) using recycled water, water treatment even for car paint,” he commented.
López Obrador, who said he had already had his first conversation with the magnate last Friday, publicly announced the possibility of opening a plant in another region of the country with greater availability of resources.
The concern of the Mexican government is based on the increase in population that this investment could bring.
North facing market
Tesla, which sold a record 1.31 million vehicles in 2022, is the most recent major auto company to settle in Mexico.where manufacturers such as Ford, General Motors, Volkswagen or BMW already operate, producing cars mainly for the United States.
Companies are looking to gain access to the US market and take advantage of the benefits offered by the USMCA Free Trade Agreement between Mexico, the US and Canada.
For this reason, many of them are located in areas close to the border, such as Nuevo León, a state with a strong industrial vocation, which is also home to Kia’s South Korean plant.
Source: La Opinion
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