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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.

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