Geely and BYD Battle for Nissan-Mercedes Mexico Plant: What It Means for North American EVs | Taha Abbasi

A dramatic shift is underway in North American automotive manufacturing, and Taha Abbasi is watching closely. Reports out of Mexico indicate that Chinese automakers Geely and BYD are the top bidders for Nissan and Mercedes-Benz’s joint venture factory in Aguascalientes — a move that could fundamentally alter the EV competitive landscape on this continent.

The Factory in Play

The Aguascalientes plant, operated as a Renault-Nissan-Mercedes joint venture known as COMPAS, has been producing vehicles for the North American market for years. The decision by Nissan and Mercedes to sell represents a retreat by legacy automakers from manufacturing capacity they can no longer justify, while Chinese companies see an opportunity to establish a production foothold closer to the massive U.S. and Canadian markets.

For Taha Abbasi, this acquisition battle encapsulates the broader story of the global automotive industry’s transformation. Legacy manufacturers are shedding assets while Chinese companies — flush with EV expertise and competitive pricing — are acquiring them.

Why Mexico Matters for Chinese EVs

A Mexican manufacturing base gives BYD or Geely something they desperately want: proximity to the North American market without the punitive tariffs that would apply to vehicles imported directly from China. Under USMCA trade rules, vehicles assembled in Mexico with sufficient regional content can enter the United States tariff-free or at significantly reduced rates.

This is a strategic chess move. While the current U.S. administration has imposed steep tariffs on Chinese EVs, a Mexico-based factory could potentially circumvent those barriers — assuming the final products meet rules-of-origin requirements. The regulatory and political implications are enormous.

BYD vs. Geely: Different Strategies

BYD, now the world’s largest EV manufacturer by volume, has been aggressively expanding globally. From Southeast Asia to Europe to South America, BYD is building manufacturing and distribution networks at a pace that rivals Tesla’s own expansion. A Mexican plant would be their most significant North American move to date.

Geely, which owns Volvo Cars, Polestar, and Lotus, takes a more portfolio-based approach. Rather than a single brand, Geely could use the Aguascalientes facility to produce vehicles across multiple brands, each targeting different market segments.

Implications for Tesla and U.S. Automakers

Taha Abbasi has consistently argued that competition benefits consumers, and Chinese EV manufacturers entering North American production would accelerate the transition to electric transportation. However, it also presents a genuine competitive threat to domestic manufacturers.

Tesla’s advantage has always been its integrated ecosystem — not just the car, but Supercharging, FSD, energy products, and insurance. Chinese competitors may match or beat Tesla on vehicle hardware and pricing, but replicating the software and services ecosystem is another challenge entirely.

The outcome of this acquisition will signal whether North American automotive manufacturing is entering a new era — one where the most competitive producers are no longer from Detroit or Stuttgart, but from Shenzhen and Hangzhou. Taha Abbasi will be tracking this transformation every step of the way.

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About the Author: Taha Abbasi is a technology executive, CTO, and applied frontier tech builder. Read more on Grokpedia | YouTube: The Brown Cowboy | tahaabbasi.com