Manufacturing in Mexico Creates a Diverse Automotive Market
November 16, 2012
Manufacturing in Mexico is booming in the central region of the country. Greater opportunities emerged for auto manufacturing in Mexico, especially for suppliers after Mazda, Honda, Nissan, Audi and Volkswagen announced they were expanding manufacturing in the Guanajuato region. Audi was the latest company to announce expansion into Mexico for its first North American manufacturing location. Audi, and many other automotive companies, have recognized Mexico as an opportunity for higher profit margins, price competitiveness, good infrastructure and close proximity to the U.S.
Mexico’s automotive producing economy is now the world’s fastest growing. This industry is not only gaining recognition within the manufacturing realm but has also contributed generously to Mexico’s economy. Various manufactures are relying on this nation for quality production and low costs.
Bloomberg announced that Mexico’s vehicle output is, “on pace to reach a record 2.86 million units in 2012.” Mexico is also proving to be an attractive platform for manufacturers due to its trade agreements with numerous countries and making the export to Africa, Asia, South America, US and Canada, seamless.
Automakers have invested $7.8 billion within the last two years. Cost benefits are creating a big push to utilize Mexico for manufacturers.
With over 400 different models, and 42 different automakers, Mexico could be considered one of the most diverse automotive markets in the world. They are making positive strides for its future and have the numbers to back it with a 13.3 percent increase in production this time last year.