Mexico Manufacturing Companies Continue Expansion In Auto Production

Mexico Manufacturing Companies continue their forward momentum some would say acceleration, in automobile production close to the lucrative U.S. consumer market.  As evidence, Honda Motor Company recently announced plans to build an $800 million plant in which to produce sub-compacts; all this on the heels of Mazda’s $500 million factory announcement earlier this year.  What’s more, GM, Audi, and Nissan also have their sights set on building a manufacturing company in Mexico presence as well.  And why not?  As the world’s ninth largest car-building nation, Mexico continues siphoning production away from China where wages are rising, transportation costs swell and intellectual property issues are unpredictable.

All this change, according to Vivian Olmos, VP of North American Production Sharing affirms what AlixPartners has concluded: that Mexico manufacturing companies are overtaking China, Brazil and India in outsourced manufacturing.  Why?  The favorable exchange rate, free trade advantages and proximity to U.S. markets are key reasons.  Entrada Group’s, Douglas Donohue, echoes this sentiment.  Well positioned Entrada Group assists companies looking to set up shop in Mexico.  According to Donohue, any Asian and European manufacturing company in Mexico producing cars sees a “real opportunity to take market share from the Detroit three (Ford, GM and Chrysler).  Indeed, auto production charges ahead with double-digit growth in July, a statistic companies like Honda plan to capitalize on with their new facility.


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