The Chinese Communist Party’s (CCP) premier automaker, BYD, is reportedly planning to build a new factory in Mexico for the sole goal of flooding the United States market with cheap electric vehicles (EVs) while avoiding U.S. tariffs on China.
According to media in Japan, Automotive News reports, BYD has plans for a new EV factory in Mexico in the hopes of exporting the cheap cars to the U.S. for sale without having to be hit with U.S. tariffs placed on China.
“China’s BYD Co. will set up a new electric vehicle factory in Mexico … as the EV maker aims to establish an export hub to the United States,” Automotive News reports.
In Mexico, auto workers often earn $3 to $3.25 an hour. Taking advantage of the low wages in Mexico, BYD is looking to build cheaply made EVs that can very competitively compete against EVs made in the U.S. by Tesla, General Motors (GM), and Ford.
Last month, Tesla CEO Elon Musk warned lawmakers that if the U.S. does not put hefty tariffs on foreign-made cars, the American auto industry will be decimated:
The Chinese car companies are the most competitive car companies in the world. So, I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are established … frankly, I think, if there are not trade barriers established, they will pretty much demolish most other companies in the world.” [Emphasis added]