Mexico a Perfect Fit for Auto Industry’s Expansion into New Growth Markets
Commentary by Doug Donahue
Move over, BRICs. The investments coming from the auto world in the coming years will focus on the MIST countries (Mexico, Indonesia, South Korea and Turkey), according to the recent WardsAuto Outlook conference in Detroit.
“We look at where the next country says, ‘We are going to open up our borders and we’re going to offer incentives for companies to come here,’” said Joe McCabe, president of Automotive Compass, which partners with WardsAuto in producing a long-range global production forecast (as reported in WardsAuto).
This is a perfect depiction of Mexico, which WardsAuto predicts will add 1.1 million units of production by 2019 – the equivalent of five new assembly plants. This is more than the four new assembly plants the company predicts to be opened in the U.S.
It’s interesting to note that when an auto manufacturer or supplier looks for expansion in the western hemisphere, they look first to Mexico, whose open trade laws, excellent infrastructure and proximity to both North and South America make it a perfect fit.