Posts Tagged ‘mexico auto production’

Mexican Auto Imports on Increase Despite Trump’s Pushback

Sales of models produced “South of the Border” hit all-time high in 2017.

by on Jan.09, 2018

Mexico exported 2.33 million vehicles to the U.S. in 2017, a 9.4% increase over 2016.

Despite a campaign promise by Pres. Donald Trump to curb their import, sales of Mexican-made cars, trucks and crossovers surged to an all-time high in 2017.

In all, 2.33 million vehicles were shipped to the U.S. from assembly lines “South of the border,” a 9.4% increase over 2016, according to Mexican auto industry data. That reflects a variety of factors, including the opening of new Mexican assembly plants, including an Audi factory that last year became the sole global source of the carmaker’s popular Q5 crossover-utility vehicle.

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The surge could create some political headaches for Mexico, however. During his 2016 campaign, then-candidate Trump sharply criticized carmakers like Ford for importing cars from Mexico and warned he would impose “a big border tax.” While Trump hasn’t followed up on that threat his administration’s chief trade representative is engaged in a high-stakes bid to renegotiate the North American Free Trade Agreement that helped boost the Mexican auto industry. (more…)

Ford Set to Double Mexican Production

New plant could handle planned “Prius-fighter.”

by on Feb.08, 2016

Ford CEO Mark Fields is trying to find ways to reduce production costs of small cars and upcoming battery-electric models.

Ford Motor Co. will more than double production in Mexico, according to several reports, by both adding a new plant and increasing production in the Latin American nation.

The maker reportedly expects to put the focus on hybrids and smaller cars that are hard to economically justify building in the U.S. market. That includes the Ford Focus and C-Max models currently being produced at a suburban Detroit plant. But could also include a planned “Prius-fighter” meant to take on the popular Toyota hybrid.

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Ford had earlier indicated plans to shift production of the Focus and C-Max but declined to comment on the latest reports about Mexico.


Toyota Eyeing Plant for Mexico

Maker reportedly eyeing several possible locations.

by on Sep.11, 2014

Toyota may be the next to head South of the Border.

Toyota may soon become the next major automaker to open an assembly plant in Mexico, following other global manufacturers including BMW, Kia and Mercedes-Benz, all of whom announced plans to set up operations “South of the border” in recent months.

Toyota, which already operates an extensive manufacturing network in the U.S. and Canada, would not be a stranger to Mexico. It already operates a so-called “kit car” plant in Baja, California an hour south of Tijuana, that assembles about 50,000 small pickup trucks annually.  But unlike other global manufacturers, Toyota has not built a full-scale assembly plant in Mexico, which has seen automotive-oriented investments boom in recent years.

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Mexico is already the world’s sixth-largest auto producing nation, with manufacturers including Detroit’s Big Three, Volkswagen and Nissan, firmly entrenched. Audi is in the midst of readying a plant near Puebla that will become the first to build luxury cars. Honda joined the procession in February, and, just since June, Kia Motor Corp. BMW AG and Daimler AG have announced plans for Mexican operations.


Automakers Migrating South of the Border

Mexico serving as major global production and export base.

by on Oct.21, 2013

Workers in Puebla gathered to celebrate the launch of production of the latest VW Beetle, one of many new models going South of the Border.

Despite the ongoing recovery of the U.S. market, manufacturers have been extremely reluctant to boost capacity, adding third shifts where absolutely necessary and avoiding, if at all possible, the need to invest in new assembly plants.

It’s an entirely different matter South of the Border.  In the months to come, a wide range of automotive manufacturers, including Nissan, Audi and Honda, plan to launch production at all-new plants designed to not only rising demand in Mexico itself but which will serve as a major export base for markets around the world.

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The boom in Mexican production is meant to take advantage not only of an abundant supply of relatively low cost labor, but also the fact that Mexico has negotiated more free trade agreements than almost any other country in the world.


Toyota Latest Maker to Expand Exports from US Plants

Growing list of American-made cars now heading abroad.

by on Sep.26, 2013

Toyota will begin shipping American-made Corolla sedans abroad next year.

Toyota plans to begin shipping U.S.-made Corolla sedans to 18 countries in Latin America and the Caribbean starting next year.

The move is part of a rapid ramp-up of exports from the U.S. by the world’s largest automaker which already ships vehicles from the States to markets as diverse as Europe and Asia. And Toyota isn’t alone, a growing number of its competitors also using the U.S. as an export base to take advantage of the weak dollar – and their expanding North American production networks.

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“Toyota’s U.S. manufacturing operations continue to grow as a key supplier of cars and trucks for global markets, which is only possible thanks to the dedication and high-quality work of our team members here,” said Jim Lentz, CEO of Toyota’s North America Region, “the export of U.S.-built Corolla sedans to Latin America and the Caribbean will help to further solidify our U.S. manufacturing base.”


Mexican Government Desperate to Assure Foreign Auto Investors

Countering fears as drug-related violence spreads.

by on Nov.18, 2011

Beetle production begins at the VW plant in Puebla.

Faced with a “frightening” rise in violence, the Mexican government is racing to head off a wholesale move away from the region that serves as the base for many foreign automakers and suppliers,

Mexican security services are offering special private briefings on the government’s strategy for combating violence across that violence-plagued nation, especially in the north where American companies have built hundreds of automotive factories over the past three decades.

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Sergio Rios, a representative of Pro Mexico, an agency of the Mexican government designed to encourage foreign investment, said the special briefings are designed to explain to investors the country’s strategy to combat the drug-related violence that has created havoc across northern Mexico. The briefings are also designed to offer some reassurance about the broader security situation, which is giving some companies pause about investing in the violence-plagued nation.


Is Mexican Drug War Putting Auto Industry at Risk?

Will drug cartels target the auto industry next?

by on Jul.25, 2011

The worsening drug war in Mexico could threaten that nation's booming auto industry.

Nearly one-fifth of North American car and truck production originated in Mexico during the first half of 2011, according to industry production statistics — more than from our neighbor to the North, Canada.

And lest the UAW and its supporters get their drawers twisted, this South-of-the-Border vehicle assembly is not just by Detroit-based manufacturers fleeing U.S. labor costs. High-volume European and Asian manufacturers also depend heavily on Mexican production, though in some cases it is a base for distribution throughout the hemisphere.  Besides cost, high quality work by well-trained and motivated Mexican employees is another driver. For example, Ford’s Hermosillo plant produces the Ford Fusion and Lincoln MKZ, both lauded by independent studies for their high quality.

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Therefore, dangerous instability in Mexico poses a threat to the retail market in the U.S. and, indeed, Canada. And this has nothing to do with the paranoia in some quarters about illegal immigrants from Latin America. Indeed, if anything, Mexican production of cars, trucks and parts for the U.S. is the best safety valve we have for immigration problems. The more good jobs there are in Mexico, the fewer Mexicans will want to cross our border illegally to provide for their families.

What are these threats? In short, drug smuggling-related, anti-government violent crimes that are reaching a point just short of outright insurrection.


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