10. Mexico is one of the largest auto producers in the world with considerable potential.
11. Automotive companies and their suppliers are intensifying the transfer of their production to Mexico. This is a result of the restructuring process of the automotive industry in North America to reduce production cost. Until a few years ago, China and other low-cost countries had attracted investments for the production of auto parts. This trend changed radically from 2008, when the oil price hiked significantly and the U.S. dollar depreciated against foreign currencies. Mexico continues to be an attractive place for production thanks to the competitiveness of its manufacturing sector, low shipping cost and stable exchange rate.
![[object Object],•The most important Original Equipment Manufacturers (OEM’s) are already operating in Mexico, including some Japanese companies. •It is an export oriented industry, with important clusters in the country. •New processes are taking place in Mexico (engineering, product design, testing and R&D). •Mexico has competitive advantages for the industry (geographic postion, supply chain, logistics, human capital, etc.)](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)