Geely to build Mexico plant for global expansion

Geely Holding Group Co., China's largest private automaker, is pushing ahead with plans to build a factory in Mexico as it seeks to offset slumping demand at home by expanding overseas.

"We are making progress," Vice President Wang Ziliang said yesterday by phone from Beijing. The company intends to sell vehicles made at the plant in Central and South America, he added. Founder Li Shufu said last year the plant would build cars for the U.S.

Chinese automakers have begun to target global markets as tumbling domestic demand and rising competition crimps margins. China FAW Group Corp., the nation's second-largest automaker, has also announced plans for a Mexican plant.

Geely and a partner will initially invest $500 million in the new factory, Li said last year. Wang declined to say whether Geely has yet found partners for the plan.

The automaker isn't interested in buying General Motors Corp.'s Saab brand, Wang said, denying a Reuters report. The company will focus on boosting sales by improving its competitiveness rather than on seeking acquisitions, he added.