BEIJING, Nov. 24 -- China FAW Group Corp will become the country's first automaker to operate a plant in Mexico, as increasing domestic competition causes Chinese carmakers to seek sales in Latin America, Eastern Europe and Asia.

    The automaker and Grupo Elektra SAB, Mexico's largest electronic-goods retailer, will build a $150 million factory in Michoacan state, the Mexican company said. Tianjin FAW Xiali Automobile Co, a unit of FAW Group, halted its shares in Shenzhen on Friday, pending a statement on Saturday. Meng Junkui, the unit's board secretary, was unavailable for comment.

    FAW Group, China's second-largest automaker, follows Chery Automobile Co and Great Wall Motor Co in expanding overseas as a surge in the number of models available in China squeezes domestic profit margins. FAW Xiali's earnings have also slumped this year as rising wages and stock market gains cause dri...

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