In more good news for Mexico's booming automotive industry,the Wall Street Journal and Bloomberg are reporting that production will increase throughout 2013 and beyond. In fact,2012 saw around $6 billion in internal investment dollars for this important sector in Mexico,which is more than double the industry’s 2011 numbers.
“Mexico is taking center-stage in the production of cars,where lower costs and skilled workers are reordering the global auto market,” reported the Wall Street Journal. “One in ten cars sold last year in the U.S. was made in Mexico.”
In less than a decade,Mexico real estate has risen from the world’s ninth largest exporter of automobiles to the fourth largest,with exports projected to total more than 2.14 million vehicles in 2012. Furthermore,every new taxi added to New York’s fleet that is manufactured by Nissan Motor Co. will be made in Mexico,and the nation is also exporting vehicles to China and Japan,among a number of other countries worldwide.
“Nissan is already building its third plant in Mexico,breaking ground in July on the $2 billion factory,” writes Bloomberg. “Foreign automakers have announced 7.8 billion in investments in the country in the past 24 months.”
Bruno Ferrari,who is Mexico’s Economy Minister,also told the Wall Street Journal that Mexico is poised to surpass South Korea and become one of the world’s top three auto manufacturers over the next few years. This projection follows plans by Volkswagen AG,Hondo Motor Co.,General Motors Co.,Mazda Motor Corp.,Fiat SpA,Daimler AG and Nissan to expand operations in Mexico.
“Mexico is extremely competitive,” shared Carlos Ghosn,who is the CEO of Nissan. “Plants in Mexico operate more hours a year than other Nissan facilities worldwide.”
In addition to its strategic geographical location,Ghosn cited Mexico’s currency advantages and the high productivity of the nation’s employees as additional reasons why it will remain attractive for automakers in coming years.