On November 23 a business conglomerate in Mexico announced plans to import Chinese cars into Mexico starting in 2008 and to begin building the vehicles there in partnership with a Chinese firm by 2010.

The Mexican communications, financial services, and retailing entity, Salinas Group, will build an assembly plant in Western Mexico as a partner of China's First Automobile Works Group (known by the acronym FAW).

Salinas, through its unit Grupo Electra, will retain a majority stake in the plant, which will be built for an expected $150 million over a three year period with a planned capacity of 100,000 vehicles a year when it goes online.

Mexican President Felipe Calderon placed the cornerstone for the assembly plant on November 23. The facility's products will be sold within Mexico and will also be exported throughout Central America.

Salinas already imports motorbikes manufactured in China and plans to have FAW-badged cars on the road in Mexico by the first quarter of 2008.

In addition to its work with FAW, Salinas also has partnership arrangements with Toyota, Mazda, and Volkswagen/Audi. Mexican law requires that a foreign company that wishes to sell cars or trucks in Mexico must maintain a viable assembly operation on Mexican soil or prove its intent to do so with the positioning of a cornerstone.

The new plant is located in Zinapecuaro north of Morelia, the state capital of Michoacan between Mexico City and Guadalajara.