BYD's factory plan shelved

China’s leading electric vehicle maker BYD has shelved plans to build a major factory in Mexico amid geopolitical tensions and uncertainty over U.S. President Donald Trump’s trade policies. The company is interested in expanding in the Americas but has no timetable for making new investments, BYD Vice President Stella Li said in an interview Tuesday in the Brazilian state of Bahia, where the company opened its first factory outside Asia. “Geopolitical issues have a big impact on the auto industry. Everyone is now rethinking their strategies in other countries. We want to wait for more clarity before making a decision,” Li said. BYD WAS LOOKING FOR A LOCATION BYD was exploring three sites in Mexico for a new car factory before stopping the active search last year as it awaited the results of the U.S. presidential election. BYD WAS WORRIED ABOUT THEFT OF TECHNOLOGY Mexican President Claudia Sheinbaum said in March that BYD had not made a formal offer to invest in the country. China’s Commerce Ministry delayed approval of BYD’s factory in Mexico over concerns that the company’s technology could be accessed by the United States, the Financial Times reported in March. That was before Trump announced sweeping tariffs on dozens of U.S. trading partners and separate duties on some imports, including cars, disrupting the industry’s supply lines. U.S. automakers have warned that the tariffs would add billions of dollars in additional costs. General Motors said last month it would spend $4 billion to shift production of several pickups and SUVs from factories in Mexico to the United States. Li said the company still planned to expand its manufacturing footprint, but it was unclear when that decision would be made given the uncertain global trade environment.