According to sources, China's auto manufacturer, Great Wall Motor Co., Ltd. (601633.SS) (2333.HK) is considering building a depot in two Mexican states. Both states are being attacked by US President Trump to encourage US companies to invest in local operations.

According to sources familiar with the situation, Great Wall Motor intends to build a depot in Nuevo Leon in the north of Mexico or San Luis Potosi in central San Luis Potosi. Great Wall Motor said it is China's largest sports car (SUV) and pickup manufacturers.

Ford Motor (Ford) (FN) canceled a plan to build a $ 1.6 billion depot in St. Louis Potosi in January, with the pressure of Trent's stay in the US initiative, while heating and air conditioning producers Carrier also withdrew its plan to transfer production to New León in December.

According to a source and two documents seen by Reuters, Great Wall Motor executives met with the major Mexican railway companies Ferrocarril Mexicano (Ferromex) and Kansas City Southern de Mexico (KSU.N) executives to assess the two states Of the traffic convenience. Ferromex is part of the Grupo Mexico (GMEXICOB.MX).

One of the sources said the Great Wall Motor and the New León State Government conducted direct consultations.

Another source said the Great Wall Motor is also considering building in the United States, but did not disclose further details about the site.

Great Wall Motor, an anonymous executive, said the choice in the United States or in Mexico to build factories, will depend on the United States, Mexico and China's trade problems.