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Posts Tagged ‘mexico auto exports’

Auto Production Numbers on the Rise in Mexico

New plants and upgrades now online upping production capacity.

by on Nov.08, 2016

Daimler AG's Dieter Zetsche, left, and Renault-Nissan's Carlos Ghosn shake hands after announcing plans to build luxury cars in a plant in Mexico.

Auto production in Mexico is poised to grow by 8.4% in 2017 as new and upgraded manufacturing plants increase the number vehicles they build for export, according to a new report from BMI, the research arm of Fitch Group, which specializes in the analysis and evaluation of financial information.

“For 2017, we maintain a bullish outlook on the Mexican autos industry, particularly light vehicle manufacturing, despite our forecasts of a decline in total light vehicle demand in the US and Canada,” the report noted.

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The report predicts fan 8.4% rise in Mexican light vehicle production, including a 7.4% increase in passenger car output and a 9.8% rise in light commercial vehicle production, which includes sport-utility vehicle output. (more…)

New Audi Plant Rises Out of the Mexican Dust

German luxury maker takes a $1.3 billion risk with next Q5.

by on May.22, 2014

The next-generation Audi Q5 will be produced at the maker's new Mexican assembly plant.

A steady stream of trucks roars across the parched field kicking up swirls of dust. The new Audi assembly complex is quite literally rising out of the high plains desert, an hour outside of the city of Puebla, the maker pouring another 19 feet of soil atop the two square miles of barren land it is has acquired for the project.

Audi is the latest in a fast-growing line-up of manufacturers to invest in Mexico, the maker drawn to the country for both its low labor costs and, perhaps more importantly, the numerous free trade agreements the Mexican government has negotiated.

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That will make it easy to use the new, $800 million plant as the sole source for the maker’s next-generation Q5 sport-utility vehicle. Indeed, Audi has already laid out plans to double the factory and shift even more production there from Germany.

“This marks the point at which we will build more cars outside Germany than at home,” notes Klaus-Peter Koerner, who will manage production at the facility when it opens in mid-2016.


Automakers Migrating South of the Border

Mexico serving as major global production and export base.

by on Oct.21, 2013

Workers in Puebla gathered to celebrate the launch of production of the latest VW Beetle, one of many new models going South of the Border.

Despite the ongoing recovery of the U.S. market, manufacturers have been extremely reluctant to boost capacity, adding third shifts where absolutely necessary and avoiding, if at all possible, the need to invest in new assembly plants.

It’s an entirely different matter South of the Border.  In the months to come, a wide range of automotive manufacturers, including Nissan, Audi and Honda, plan to launch production at all-new plants designed to not only feed rising demand in Mexico itself but which will serve as a major export base for markets around the world.

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The boom in Mexican production is meant to take advantage not only of an abundant supply of relatively low cost labor, but also the fact that Mexico has negotiated more free trade agreements than almost any other country in the world.


Mexico Auto Output to Jump 38% in 3 Years

Low wages, good location offset concerns about the ongoing drug war.

by on Aug.30, 2012

Workers in Puebla gathered to celebrate the launch of production of the latest VW Beetle.

While Mazda may have abandoned its decades-old joint venture with Ford, transferring production of the Mazda6 sedan back to Japan, the maker isn’t walking away from North American production entirely.

By mid-decade, the Japanese maker plans to open a new factory in Mexico to produce smaller products like the Mazda3.  And it isn’t alone.  Honda, Audi and Nissan are among the growing list of automotive manufacturers who have announced big plans for Mexican plants.  Mercedes-Benz is also expected to add an assembly line South of the Border to complement the factory it currently operates in Alabama.

It’s all expected to add up to a whopping 38% jump in automotive production in Mexico over the next three years – an additional 1 million vehicles, according to the head of that nation’s investment promotions agency.

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“Other companies are exploring the possibility of opening facilities in Mexico,” Carlos Guzman, president of ProMexico, told the Bloomberg News Service. “We expect a very good period of five to seven years in Mexico in terms of growing (automotive) exports.”