Chinese-made cars in Mexico

Several Mexican newspapers are reporting today that Elektra, a Mexican retailer, has struck a deal to begin importing Chinese cars that will sell for five or ten percent less than comparable cars now available in Mexico. El Universal's version of the story is available here.

The cars will be on sale early in 2008, if all goes as planned. The Chinese manufacturer is First Automobile Works Group.

Perhaps most significant, FAW has pledged to build a factory to begin building its cars in Mexico (Michoacan state) three years from now. It's supposed to be a $150 million investment that will produce enough cars for the Mexican and Central American market.