Crossborder Insights: After Recession Pitstop, Is Mexico’s Auto Industry Racing Ahead?

July 27, 2010 at 7:38 am 2 comments

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 Automotive Brief - Download PDF Here

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.


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2 Comments Add your own

  • 1. Henry Moon  |  July 29, 2010 at 10:27 am

    Thanks Kenn! Based on the increased level of heavy truck traffic that we are seeing and measuring here in West Texas, I completely agree with your assessment. I-10 is very quickly growing out of its age-old status as “underutilized.”

    Reply
    • 2. crossbordergroup  |  July 29, 2010 at 12:00 pm

      Henry, nice to hear from you – it’s been busy here so haven’t written back yet. On the traffic: we’re definitely in agreement (we’ll try to put some updated border crossing stats online in the coming weeks), and see the Texas economy likely to continue beating the national recovery (it’s been around 1.0-1.5% below the National unemployment levels, and a full 3.0-4.0% below California’s [yikes!]) as well as benefiting from a maquiladora / IMMEX industry turnaround in not just border states, but also growth in Central regions of Mexico, too. Keep us informed of the relocation and news from Sonora! Saludos!

      Reply

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