Historically, the automobile industry has been a strategic sector for development in Mexico. Its share in the national economy places it as the second most important industry in Mexico, only preceded by the oil industry.

With a vast infrastructure and over 1,000 auto parts companies, the Mexican automobile sector is the 10th largest vehicle producer in the world, and an important platform for manufacturing global products to the highest standards of quality and safety.

In 2008, Mexico produced 2,102,801 cars, an increase of 4% on 2007, and exported 1,661,406 vehicles, 3% more than the previous year. Such increases are noteworthy in the context of the steep drop in sales of 18% recorded by the American automobile industry.

In the same year, vehicle exports by the Mexican automobile sector rose thanks to a greater diversification of the market. Exports to Europe increased by 9.8%, while sales to Asia and Latin America rose by 2.2% and 7.3% respectively, over the same period.

The Mexican automotive industry is focused on investment markets as much as it is on exports. Key models built in Mexico for worldwide sales are the Lincoln MKZ, the Volkswagen Beetle, the Nissan Tiida, the Honda CR-V, the Dodge Journey and the armored BMW X5. Precision machining, plastic injection molding, aluminum casting, nodular iron, cold and hot forging, along with sheet metal stamping, make this a window of opportunity for the industry.

CDM Auto consultants forecasts that automobile production in Mexico will reach 3.1 million units by 2013, double the 2008 output.

According to the study “Competitive Alternatives KPMG´s Guide to International Business Location 2008 Edition”, carried out by KPMG consulting together with Mercer, Colliers International, Economic Research Institute and Decisio, Mexico is the most competitive country for the auto parts manufacturing.

Also, according to the study “Manufacturing Outsourcing Cost Index 2009”, carried out by Alix Partners, Mexico’s competitiveness is confirmed:

 

Qualified workforce

•Mexico has over 750 thousand engineering and technology students.

•Every year, 90 thousand engineering and technology students graduate.

•Mexican universities offer more than 900 graduate programs related to engineering and technology.

 

Wide supply network

•100 of the world’s leading auto parts companies are established in Mexico, such as Robert Bosch, Denso, Delphi, Magna, Visteon, Eaton, Valeo, Bridgestone/Firestone, Johnson Controls, Michelin, Aisin Seiki, Goodyear, Lear, ThyssenKrupp, Faurecia, Siemens, San Luis Rassini, Metalsa and Brembo, to name a few.

•In 2008, Mexico manufactured about 30 billion dollars in auto parts, 80 percent of which were shipped to the US.

 

Models exclusively manufactured in Mexico comply with the highest environmental quality and safety standards.

The following are some examples:

•VW:Beetle, Bora Sedan and Bora Variant

•Ford:Mercury Milan, Ford Fusion and Lincoln MKZ

•GM:Luxury SUVs, compact and crossover vehicles

•Nissan:Sentra and Tiida (known as Versa in the US)

•Honda:CR-V and their first Multi Utility Vehicle (MUV) called "Big Red"

•Chrysler:PT Cruiser, Journey and the "HEMI" 5.7 and 6.1 Lt. engines

 

Among this industry’s most important companies in the country are:

Toyota, Ford, GM, Chrysler, Volkswagen, Nissan, Honda, Volvo, BMW, Mercedes-Benz, Scania, Cummins, Daimler, Kenworth, Freighliner, International-Navistar, Robert Bosch, Denso, Delphi, Magna, Visteon, Eaton, Valeo, Bridgestone/Firestone, Johnson Controls, Michelin, Asin Seiki, Goodyear, Lear, Krupp, Faurecia, Siemens, San Luis Rassini y Metalsa.

 

Success Stories

General Motors opened three operation centers in 2008. In the last five years, the company's total investment was of over 3 billion dollars.

In an effort to retool many of its plants by 2010 Ford announced an investment of 3 billion dollars in 2008.

Nemak is one of the most important Mexican auto parts manufacturers. It has expanded its operations to over 13 countries in Europe, Asia and America.

 

 

Last Updated: Monday July 23 2010