Crossborder Insights: After Recession Pitstop, Is Mexico’s Auto Industry Racing Ahead?
New data from several major automotive manufacturers signals a recovery, and a shift toward expansion and increased foreign direct investment into Mexico’s automotive industry.
Mexico’s automotive sector experienced a steep decline in production and investment in 2009 due to the global economic downturn. In fact, by January of 2009, production of cars and light trucks had fallen to less than half of January 2008’s levels — a trend which continued throughout most of 2009. However, several major OEM’s have recently announced plans for production or supplier expansions in Mexico over next few years.
Research and analysis conducted by Crossborder Group (in PDF at right) shows that — despite the negative reports about foreign investment in Mexico — investors have actually brought more than US$15.7 billion in auto industry investments to Mexico between 2000-2009 (often in IMMEX / maquiladora operations).
“It’s clear after the 2009 crisis that automotive manufacturers are already expanding their Mexico-based operations,” notes Crossborder Group’s President, Kenn Morris, “which in turn is creating new opportunities for automotive suppliers in North America, particularly those with lower-cost manufacturing facilities in Mexico.”
More details are available in our downloadable, 1-page CrossborderInsights brief here (PDF): 1007-CInsights-Mexico-Auto-Industry-Races-sec
If you would like to be notified about our more-extensive report regarding the Automotive Industry in Mexico, please use the contact form below this posting — or call us at 1-888-4XBORDER.
Entry filed under: Research-Insights. Tags: auto industry, border economy, cars, fdi, foreign investment, global trade, IMMEX, investment, manufacturing, maquiladoras, Mexico, NAFTA, North America, transportation, US-Mexico Trade.