2010 - Crossborder Informa: Mexico Auto Industry Racing Ahead?


Published on

Short Crossborder Group briefing from Aug 2010 focused on Mexico's rebounding and fast-growing automotive industry - as well as some implications for future growth in this important, North American industry. Includes statistics on passenger vehicle/light truck production in Mexico during 2008-2010 period.

Published in: Automotive
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

2010 - Crossborder Informa: Mexico Auto Industry Racing Ahead?

  1. 1. CrossborderINFORMA Research :: Analysis :: Insights A review of recent business, industry & policy research by CrossborderBusiness.com, a division of Crossborder Group August 2010 After Recession Pitstop, Is Mexicos Auto Industry Racing Ahead?Since peaking in late-2008, the auto industry in Mexico has been just one of the casualties in the globaleconomic crisis: by January of 2009, production of passenger vehicles and light trucks at Mexicanmanufacturing facilities had dropped by more than half – a situation that continued throughout much of2009. As the crisis has abated, however, andconsumer demand has returned, a number ofindications exist that Mexico’s automotive industryhas not only largely recovered, but may acceleratein 2011 and beyond: • As seen at right, during the first six months of 2010, Mexico’s production of passenger vehicles and light trucks has turned around – averaging nearly 180,000 vehicles per month, and over 1 million vehicles so far this year; • Also, despite recent negative reports about foreign investment generally, investors have actually brought more than US$15.7 billion in auto industry investments to Mexico between 2000 and 2009 – 86% of which flowed into just eight states of Mexico (including DF), making for a highly- concentrated market of OEMs and their Distrito Federal $3,704.8 suppliers. Chihuahua $2,831.8More encouraging are new numbers that have Puebla $1,866.0significant implications for Mexico’s automotive Estado de México $1,506.6future: OEMs like Chrysler, Ford, GM, Nissan andVolkswagen have all announced increased capacity Nuevo León $1,442.4expansions and/or retrofits in Mexico during 2010 – Guanajuato $862.5leading some industry analysts to estimate that Top 8 States forMexico’s share of auto production will grow to Coahuila $712.1 Foreign Investmentnearly one-fifth of all North American vehicles by in Automotive Industry Aguascalientes $676.9 (2000-2009, US$ millions)the end of this decade.Two examples of this future growth: Volkswagen’s mid-July announcement of a three-year, US$1billion expansion of their Puebla manufacturing site (one that may also gain even more investment:North America’s newest engine plant); and BMW’s announcement in June to increase auto supplypurchases from approximately US$615 million in 2009 to US$2.4 billion by 2012 – a high-octane boost tosuppliers (and industry stabilization) in Mexico.Look for Crossborder’s more-detailed Mexico auto industry report available online September 1, 2010. For moreinformation or assistance with Mexico’s industries and opportunities, contact the binational research andconsulting staff of Crossborder Group at Answers@CrossborderBusiness.com Crossborder Research :: Strategies :: Market Entry Solutions :: 1.888.4XBORDER :: Answers@CrossborderBusiness.com Crossborder Group Inc.: Crossborder NS, S de RL de CV: Paseo de los Heroes 10289, Primer Piso 107-A, Zona Rio, Tijuana, Baja California 22010 MEXICO