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Posts Tagged ‘mexico drug war’

Mexican Government Desperate to Assure Foreign Auto Investors

Countering fears as drug-related violence spreads.

by on Nov.18, 2011

Beetle production begins at the VW plant in Puebla.

Faced with a “frightening” rise in violence, the Mexican government is racing to head off a wholesale move away from the region that serves as the base for many foreign automakers and suppliers,

Mexican security services are offering special private briefings on the government’s strategy for combating violence across that violence-plagued nation, especially in the north where American companies have built hundreds of automotive factories over the past three decades.

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Sergio Rios, a representative of Pro Mexico, an agency of the Mexican government designed to encourage foreign investment, said the special briefings are designed to explain to investors the country’s strategy to combat the drug-related violence that has created havoc across northern Mexico. The briefings are also designed to offer some reassurance about the broader security situation, which is giving some companies pause about investing in the violence-plagued nation.


Is Mexican Drug War Putting Auto Industry at Risk?

Will drug cartels target the auto industry next?

by on Jul.25, 2011

The worsening drug war in Mexico could threaten that nation's booming auto industry.

Nearly one-fifth of North American car and truck production originated in Mexico during the first half of 2011, according to industry production statistics — more than from our neighbor to the North, Canada.

And lest the UAW and its supporters get their drawers twisted, this South-of-the-Border vehicle assembly is not just by Detroit-based manufacturers fleeing U.S. labor costs. High-volume European and Asian manufacturers also depend heavily on Mexican production, though in some cases it is a base for distribution throughout the hemisphere.  Besides cost, high quality work by well-trained and motivated Mexican employees is another driver. For example, Ford’s Hermosillo plant produces the Ford Fusion and Lincoln MKZ, both lauded by independent studies for their high quality.

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Therefore, dangerous instability in Mexico poses a threat to the retail market in the U.S. and, indeed, Canada. And this has nothing to do with the paranoia in some quarters about illegal immigrants from Latin America. Indeed, if anything, Mexican production of cars, trucks and parts for the U.S. is the best safety valve we have for immigration problems. The more good jobs there are in Mexico, the fewer Mexicans will want to cross our border illegally to provide for their families.

What are these threats? In short, drug smuggling-related, anti-government violent crimes that are reaching a point just short of outright insurrection.