Mexico Becomes a Global Leader in Car Manufacturing
Mexico: A global leader in car manufacturing, is now the biggest exporter of passenger vehicles to the United States, ahead of Japan, and just slightly behind Canada, which currently holds the number one ranking.
Thanks to NAFTA (The North American Free Trade Agreement)
Mexico, a global leader in car manufacturing, might take over the number one spot by next year.
In 1999 tariffs were lifted between Mexico, the United States and Canada under the terms of NAFTA and the assembly plants in Mexico turned out 1,055,221 cars.
Last year the plants assembled 2,933,465 vehicles which is almost triple the amount of cars in only twenty years.
Mexico’s proximity to the United States has made it cheaper
and quite easy for assembly plants to import the parts from the U.S. into Mexico, and put the cars together in Mexico where the labor is cheaper. Transportation costs are being cut as well, with assembly plants being built all across the border on the Mexican side of the common border.
The majority of cars that are manufactured in Mexico are exported to over one hundred countries which is 83% of all the cars made in Mexico in 2013
Mexico has commercial contracts with more than 40 countries; United States, Canada, Japan and the European Union, to name just a few.
Mexico also exports through the Pacific Alliance to most of the countries in Latin America. However six out of ten cars manufactured in Mexico, are shipped to the United States to be sold here.
New factories are opening in Mexico every year with Honda
opening for manufacture, just last month in Celaya, Mexico. Honda expects to produce 200,000 cars in Mexico each year.
