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Mexico's Automotive Industry Receives Billions in Foreign Investment Dollars

13 September, 2012

According to recent reports by Bloomberg Businessweek,the Wall Street Journal and Reuters,the automotive industry in Mexico is growing in a very big way. 

According to Bloomberg,“Investment for new automobile projects in Mexico will total $15 billion over the six-year term of President Felipe Calderon.”

Calderon’s term ends in mid-2012,but much like Mexico real estate,Mexico’s automotive industry is showing no signs of slowing down. Bloomberg also reported that Mexico is poised to become the world’s third largest exporter and seventh largest producer of automobiles by 2017. According to Reuters,in 2011 Mexico exported 2.14 million cars,which is a record number and a 15.3% increase from 2010. 

“Mexico in January rose to fifth place in global auto exports… and I think we are about to move into fourth place,” state Calderon at an event in Mexico City.

Automotive giants Ford and Honda will contribute to this trend,with Ford planning to invest at least $1.3 billion in a northern Mexico plant,and Honda breaking ground on a new $800 million facility this month. Ford will also create at least 1,000 new jobs at its stamping and assembly plant in the northern Mexico city of Hermosillo as a result of the new investments,and has already passed General Motors to become the country’s top car exporter in 2011. 

According to the Wall Street Journal,Honda has begun construction on a new vehicle production plant in Celaya,Guanajuato,which is scheduled to start production of the Honda Fit by 2014. The new plant is expected to employ at least 3,200 employees and plans to focus on developing a efficient production system that uses local parts and keeps prices down.

“Considering the needs of the Mexican market,which is expecting continued growth in the future,and also serving as a global production base for the North American region and beyond,we decided to make the Fit the first product to be produced here,” stated Takanobu Ito,president and CEO of Honda Motor Co.,Ltd.

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Topics: Investment Industry

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