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Discussion Starter · #1 · (Edited)
Giant Motors is the name of a mexican factory that builds FAW trucks, pick up and vans and sells them under its own brand "Giant Motors"
It's very interesting to see how China's bigest car builder has two joint ventures in Mexico in one hnd Salinas group is importing FAW cars and building a factory to produce about 100,000 cars by 2010 some for exportation, in he other Giant Motors is building trucks and comertial vehicles.
Faw is taking solid steps fot its entrance in Latin American markets.

Giant Motors website is giantmotors.com.mx
 

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hi,

I am student in Mexico in the city of Monterrey and i am now studying the Faw investment in Mexico
and i look informations about that investment decision to build a plant,
does anyone know why Faw has choosen Michoacan state to build its factory ? What was the reasons of that location ?

If you have any informations, please let me know.

Thanks a lot

Sainto
 

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one reason is because they want to enter the south american market and mexico is known for its infrastructure compareed to its southern neighbours and also because cheap labour, and something mexico has that rest of south doesnt is better relations and trade with US which gives china 3-4 years speed in entering uS
 

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My best bet is that there's plenty of manual labor in Michoacan, plus, it's a potential large market, full of legalizados and chuecos, so if you can get a new car for the price of one of those, it's pretty good, although I don't expect to see a FAW surviving on the same conditions as the Rangers do.
 

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BTW, with the NAFTA in place you might be able to import mexican-made cars to the US more easily, plus, you save a lot in shipping, since you can get those cars to the border in max 20 hours by car, instead of weeks by ship.
 

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Discussion Starter · #6 ·
Michoacan and Morelia more specifically was chosen because is the nearest city to Lazaro Cardenas port, where the shippings will be recived, however Michoacan State has one of the lowest rates for investment safety and the infrastructure is poor yet Michoacan is close to Guadalajara and Mexico city the biggest cities in th country and very close to Mexico State the most populated state in the country.
Using the advantages of NAFTA, FAW will be able to export the cars to USA and Canada using Lazaro Cardenas port, and if any time soon FAW begins to export to South America using the Mexico MERCOSUR trade agreement they will also ship the cars torugh Lazaro Cardenas.
 
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