The automotive sector in Mexico has been very attractive to global OEMs (Original Equipment Manufacturer for its acronym in English). A demonstration of this has been the attraction of 10 of the major automakers worldwide (General Motors, Ford, Chrysler Volkswagen, Nissan, Honda, BMW, Toyota, Volvo and Mercedes-Benz). In addition, another proof is the continuous investment that automakers make to expand their actual production plants or to build new plants in the country; a recent example is Ford and Toyota investments of more than three billion dollars.
Why the big automakers choose to invest in Mexico?
- Mexico has signed trade agreements on three continents and this gives access to a potential market of more than one billion consumers and 60% of world GDP; something that not all countries in the world can offer.
- The automakers have found that production costs in the country are significantly lower than in other parts of the world.
- The quality of automobile production in Mexico has caused that automakers choose the country as a production platform because it provides the right environment for the production of luxury vehicles.
- Mexico has a privileged location for export allowing automakers to send cars practically anywhere.
- Economic stability with disciplined economic policies, low imbalances and a well-capitalized banking sector.
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