Mexico is Top Car Manufacturer in Latin America
Mexico has overtaken Brazil to become the top car manufacturer in Latin America. It is second only to Canada for exporting cars to the United States.
Both Asian and European car brands are investing heavily in Mexico- based assembly plants. They are taking Mexico’s automobile industry to new heights, never before dreamed of.
Mexico produced 1.59 million cars, which is a 7.4 percent rise from the same period in 2013
The National Car Association of Motor Vehicles of Brazil said that the 16.8 percent drop in car production is due to lower sales in the Brazilian market. Ninety five percent of what Brazil makes gets sold in its own market, and only 5 percent gets exported. The exact opposite is true in Mexico. 83 percent of what Mexico manufactures gets exported and the country has had significant growth.
The last four years in Mexico have shown the opening of 6 new assembly plants. Audi, Mazda, Honda, Mercedes Benz, Nissan-Renault and BMW have found the right conditions and have invested over one billion dollars each.
Mexico is currently the second largest vehicle exporter to the United States, and is second only to Canada, which holds the number one position.
In 1994 the North America Free Trade Agreement eliminated tariffs on automobile trade between Mexico,US and Canada.
Mexico’s trade agreement with over 40 countries is another key element in attracting brands that want to set up assembly plants in Mexico.
Mexico’s geographic location, a skilled workforce, and a government that keeps the economy stable, are other factors that encourage car plants to invest in building assembly plants.
“Mexico has a vibrant economy and a solid industrial foundation”, said Harold Kruger who is on the board of trustees at BMW “Mexico has a solid, well established network of suppliers. It has a highly motivated and qualified workforce”, said Kruger
Do you honestly think all this would be happening, if Mexico were not a safe place in which to do business?
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