Mexico’s Automotive Manufacturing Expands Despite Lackluster Sales in the U.S.

North American Production Sharing, Inc. (NAPS) expects further expansion in the Mexico Automotive Manufacturing Sector through 2016

Automotive manufacturing in Mexico, including auto parts, remains a bright spot for the Mexican economy with exports close to $65 billion in 2010, exceeding revenues from crude oil, remittances and tourism. Automotive exports to the U.S. fell by 14.5% in August compared to 2010, with exports to Europe partly offsetting the U.S. decline in demand. The overall Mexican economy is expected to grow between 4% and 5% in 2011. Mexican economists predict foreign direct investment in Mexico will reach $20 billion this year.

In 2008 Mexico became the largest supplier of auto parts to the U.S. Mexico exports 80% of its vehicles to the U.S.: 11 out of every 100 autos sold in the U.S. are made in Mexico. Other destinations are Latin America: 11%, and the European Union: 9%. In 2010 Mexico ranked as the 6th largest automotive exporter in the world.

By 2014 automotive production is expected to reach 2.4 million units. Eight of the 10 leading OEM’s have assembly plants in Mexico. More than 300 Tier 1 suppliers are manufacturing in Mexico, including: Chrysler, Ford, GM, Honda, Nissan, WV and Toyota. Heavy truck manufacturers inclued Dina, Navistar, Kenworth, Daimler, Volvo, Isuzu and Scania.

There are over 1,100 companies manufacturing auto parts in Mexico including: Robert Bosch, Denso, Delphi, Magna, Visteon, Eaton, Valeo, Bridgestone/Firestone, Johnson Controls, Michelin, Goodyear, Lear, ThyssenKrupp, Faurecia, and Siemens. The automotive and auto parts plants are located in 16 Mexican states: Aguascalientes, Baja California, Chihuahua, Coahuila, Distrito Federal, Estado de México, Guanajuato, Jalisco, Morelos, Nuevo León, Puebla, Querétaro, San Luis Potosí, Sonora, Tamaulipas and Tlaxcala.

Automotive companies in Mexico manufacture passenger and commercial vehicles, as well as parts and components like A/C systems; air bag modules; electrical systems; engines; seats and seat belts; hydraulic jacks; suspension systems; frames; harnesses; brakes; and transmissions.

North American Production Sharing, Inc. (NAPS) assists foreign owned companies wanting to manufacture in Mexico. Staff managed by NAPS work for Tier 1 and Tier 2 companies such as ACK Control, RG Ray, Bluestreak and Parker Legris. Companies unfamiliar with the business culture and laws of Mexico are able to benefit from working with a firm that has over 20 years of experience in Mexico.

Mexico offers manufacturing costs that are 25% lower than the US and is increasingly capturing the attention of car manufacturers, such as Mazda, which recently announced plans to invest 500 million dollars to produce 140,000 vehicles a year for export to Central and South America. Honda, GM, Chrysler, and Ford have announced expansion plans in the works for Mexico. By 2020, sales from the automotive industry in Mexico are expected to reach 120 billion dollars.

NAPS expects further automotive sector expansion through 2016. For more information about NAPS and the services offered please visit www.napsmexico.com or call 800.551.8581.

Monica Hanono
Industry Liaison & Marketing Analyst
monica.hanono@napsmexico.com
phone: 858-794-7947
toll free: 800-551-8581

About NAPS

NAPS is an industry leader, providing outsourced administrative and compliance services for foreign owned companies wanting to manufacture in Mexico.NAPS offers start-up and ongoing administration of manufacturing and service operations in Mexico.  Since 1991, NAPS has played a key role in ensuring the success of 70 companies including:  Esterline, Hewlett Packard, Intuitive Surgical, JAE, Monster Cable, Parker Hannifin, Speck Products, Toyota & Qualcomm.  For more info about NAPS and the shelter services in Mexico we offer please visit www.napsmexico.com

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