Podcast: Seizing Opportunity – 23 Billion Reasons Why Auto Suppliers Are Looking at Mexico


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Podcast: Seizing Opportunity – 23 Billion Reasons Why Auto Suppliers Are Looking at Mexico

Mexico’s strong infrastructure, competitive labor costs and ideal proximity to the US market continue to fuel growth in Mexican automotive manufacturing. Currently nine out of the world’s top ten automakers now manufacture cars and light trucks in Mexico, which is the world’s seventh largest producer.

auto suppliers in Mexico

auto suppliers in Mexico

“Getting to one customer is key to getting that initial capacity established and getting the operation moving. But very quickly, they need to diversify and expand and look for other customers,” Daron Gifford, Plante Moran.

So how can Tier 2 and 3 auto suppliers leverage Mexico? Daron Gifford, a top strategic management consultant to both OEMs and auto suppliers, discusses why the need for a broader supply base is acute, and how auto suppliers in Mexico can leverage their operations for growth.

Daron Gifford, management consulting partner with Plante Moran, explores the following in this interview with Entrada’s Doug Donahue:

  • The pressing need on behalf of the OEMs to add auto suppliers within two to three years.
  • How Mexico’s 42 trade agreements with other countries can be leveraged by international manufacturers.
  • The key production processes most in demand in Mexico’s auto sector.
  • The challenges mid-size auto suppliersmay face when setting up their manufacturing operations in Mexico.
  • Strategies for international manufacturers looking to successfully establish their own Mexico manufacturing operation.
  • Why the entry of more foreign auto suppliers to Mexico may actually benefit American firms.
  • The importance for Tier 2 & Tier 3 auto suppliers to immediately focus on expansion beyond their first Mexican client.
  • What the future might hold in terms of new competition for auto suppliers in Mexico.
  • Creative financing options that some small-to-midsize manufacturers are implementing.
  • Points of success for auto suppliers looking to expand their operations to Mexico.


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