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Posts Tagged ‘mexico auto industry’

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…)

Ford Takes the Hit, But GM, Other Automakers Continue Expanding in Mexico

Trump’s tirade forcing makers to be more cautious about discussing plans.

by on Oct.17, 2016

CEO Bill Ford met with Donald Trump to discuss his attacks on Ford Motor Co.

Even as Ford Motor Co. has been forced to repeatedly defend its plans to move small car production from the U.S. to Mexico, a Who’s Who list of other automakers is set to expand operations of their own South of the Border.

An all-new Audi plant went into production at the end of September, while Nissan is set to begin producing Infiniti models at a plant it will eventually share with Daimler AG’s Mercedes-Benz brand. General Motors, meanwhile, is investing $800 million in its own small car operations in Mexico, including a retooled plant in San Luis Potosi.

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While the Audi and Infiniti/Mercedes operations show that Mexico is now attracting high-end manufacturers, much of the focus remains on small car production where low labor costs are critical to profitability. (more…)

Ford Moving All Small Car Production to Mexico

Move could expand trade debate during presidential race.

by on Sep.14, 2016

Ford's compact Focus is one of the small passenger car models moving to Mexico.

Ford Motor Co. will transfer all of its small car production from the U.S. to Mexico, a move that follows on earlier plans to shift production of several passenger car models currently produced at a suburban Detroit plant.

The move is likely to raise the ire of union workers, though investors appear to back the decision to trim production costs. The announcement also is likely to play into the ongoing presidential election, Ford already taking heat from GOP nominee Donald Trump for its earlier production decision.

Over the next three years, “We will have migrated all of our small-car production to Mexico and out of the United States,” Ford CEO Mark Fields told automotive analysts during a conference hosted by the carmaker at its headquarters in the Detroit suburb of Dearborn.

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US Auto Imports Running at Record Level

New plants in Mexico expected to widen the gap.

by on Aug.05, 2015

Honda CEO Takanobu Ito, (center right) during groundbreaking ceremonies for the maker's plant in Mexico. Honda recently began building the Fit there.

Despite the rapid expansion of “transplant” assembly lines operated by a wide range of foreign-owned manufacturers, U.S. auto imports hit an all-time record during the first half of 2015, with no sign of slowing down.

If anything, the rapid expansion of Mexico’s production base could spell even bigger automotive trade deficits in the years ahead, experts warn. Autos and automotive parts accounted for about a third of the overall U.S. trade deficit in June, meanwhile.

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Automotive imports rose by $10.8 billion, to $171.5 billion during the first half of 2015, according to a newly issued report from the U.S. Census Bureau. During the same period, auto exports dipped by $3 billion, to just $74.8 billon. (more…)

BMW Jumps on Luxury Bandwagon Going to Mexico

Bavarian maker investing $1 billion in new plant in San Luis Potosi.

by on Jul.04, 2014

Harald Krueger, BMW board member for production, and Mexico President Enrique Peña Nieto, after the announcement of BMW's new plant.

When it comes to making vehicles in North America, BMW is moving south, not to South Carolina, but south of the Rio Grande. The automaker plans to build a $1 billion plant in Mexico that would begin producing an unknown vehicle by 2019.

BMW’s facility in San Luis Potosi, a city in central Mexico, is expected to employ 1,500 workers and build 150,000 vehicles annually. The company did not announce what vehicle it will build there, but a government official there suggested the 3-Series. General Motors also has a plant in San Luis Potosi.

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While some suggest the move to Mexico helps BMW escape the higher wages of building the vehicles in Germany, officials suggest a simpler reason. (more…)

Nissan, Daimler Reveal Plans for Joint Mexican Luxury Car Plant

At cost of around $1.4 bil, lines will start rolling in 2017.

by on Jun.27, 2014

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.

Announcing the biggest project in their four-year-old alliance, Daimler AG and Nissan Motor Co. have confirmed they will jointly set up and operate a new luxury car plant in central Mexico. At a cost of 1 billion Euros, or close to $1.4 billion, it will begin operating by 2017, the makers’ two CEOs revealed during a joint news conference.

There will be two separate lines, one for each brand, at the new luxury car plant – which will be erected on a portion of the new factory complex Nissan opened in the city of Aguascalientes last November. The factory will eventually employ “nearly 5,700” workers and will have capacity to produce about 300,000 vehicles annually, said Daimler’s chief executive Dieter Zetsche and Nissan’s Carlos Ghosn.

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“Our biggest project yet,” stressed Zetsche, “it takes our partnership to the next level.” (more…)

Daimler and Nissan to Partner on New Mexican Luxury Car Plant

New factory will produce both Mercedes-Benz and Infiniti models.

by on Jun.27, 2014

Nissan opened up its Aguascalientes plant last year. But it left plenty of room to expand once it locked down its joint venture with Daimler's Mercedes-Benz.

Nissan Motor Co. and Daimler AG will announce a significant expansion of their four-year-old alliance this morning, the two partners planning to set up a new plant in Aguascaliente, Mexico that will produce small luxury cars for the Japanese maker’s Infiniti brand and the German manufacturer’s Mercedes-Benz.

The project, first reported last year by TheDetroitBureau.com, takes the three-way partnership between Daimler, Nissan and French automaker Renault to a significant new level. The maker’s initially agreed to jointly produce engines and, among other things, develop a small car platform to be used for both Daimler’s Smart brand and as a replacement for the little Renault Twingo. Just this week, a new Nissan plant in Decherd, Tennessee launched production of engines for both the Infiniti and Mercedes brands.

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The new luxury car plant will be set up alongside an existing assembly line Nissan opened in the central Mexican city of Aguascalientes next year. Nissan CEO Carlos Ghosn and Daimler CEO Dieter Zetsche has previously both confirmed they were discussing the possibility of a new joint production facility but insiders say it took longer than expected to work out the details.

(more…)

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.

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