Published on : Jun 08, 2015
To say Mexico’s automotive sector is growing would be an understatement. To state it correctly, the automotive sector in Mexico is booming.
In the last few years, at least eight automotive manufacturers have revealed plans to set up new plants in the country. By 2016, Mexico would have established base for auto manufacturers such as Infinity, BMW, Kia, Audi, and Mercedes-Benz.
Other auto makers such as Ford, GM, Nissan, and Volkswagen have long presence in the country. In 2014, the total auto production in Mexico grew 18.5%, with a record 538,972 vehicles exported and 266,899 were sold in the domestic market.
To keep with the boom, Toyota has recently announced to make an investment of US$1 billion in the new production unit in Guanajuato to roll out the next generation of Corolla. The new plant is slated to employ above 2,000 workers and roll out more than 200,000 units each yaer starting from 2019.
And all the vehicles manufactured will not be for export, Corolla is a top selling vehicle in Mexico, and a considerable number of units produced will be for domestic use.
Additionally, Ford recently announced an investment of US$2.5 billion in Mexico for two plants jointly, and also an expansion of an existing diesel engine line that will create 3,800 jobs.
The company is slated to spend additional US$1.1 billion to set up an engine facility in its existing Chihuahua Engine Plant, to create another 1,300 jobs. The engines are slated to be exported to the U.S., South America, Canada, and Asia. Ford also has plans to spend US$1.2 billion to set up a transmission plant in Guanajuato.