Not content with the fortunes generated by his telecommunications and dozens of ancillary businesses, Mexico’s richest man, Carlos Slim, is now trying to make inroads in the lucrative automobile sector.
Giant Motors, which is partly owned by Slim’s Grupo Financiero Inbursa, and Chinese auto maker JAC Motors will invest more than US$200 million to manufacture SUVs at a new assembly plant in Sahagun, Hidalgo. Construction of the new plant began one month ago.
The goal is to produce 10,000 of the Chinese-designed vehicles over the next five years.
To start with, two models, the SE12 and SE13, will be going on sale at JAC agencies at a lower cost than comparative vehicles.
For example, the basic SE12 model costs 259,000 pesos, compared to a Chevrolet Trak, which retails for 274,000, and a Nissan Kick at 286,000 pesos. A manual drive SE13 goes for 279,000 pesos.
Giant Motors President Elías Massari says the vehicles have “innovative design and technology characteristics” and are targeted at the 19- to 39-year-old market, especially first-time car buyers looking to finance their purchase.
Xiang Xingchu, director general of JAC, said the vehicles meet all international safety standards. All come with a warranty of five years or 100,000 kilometers.
Two-thirds of all of JAC’s cars are assembled outside of China. The company recently opened its first agency in Mexico City’s Naucalpan district. Expansion plans call for more agencies in Puebla, Aguascalientes, Jalisco, Merida and Chihuahua.