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High Quality, FTAs Attract Record Auto Investments to Mexico

Good news for auto-parts manufacturers: Mexico is enjoying its best auto-manufacturing year yet. Car exports rose 12% to a record 1.98 million units in the first 10 months of 2012, according to a report by Bloomberg news, citing new November figures from the Mexican Automobile Industry Association. The country is on track to keep growing through 2017.

Driving this boom are attractive free-trade agreements with Japan, Latin America, the U.S. and Europe, which also save European car companies a 10% tariff on U.S.-built vehicles. Mexico’s work force is also recognized as among the most competitively priced and highly skilled in the world.

“Across a range of industries, every single company in America that I’ve talked to will tell you that either their best plant or one of their top plants is in Mexico,” reports Bloomberg, quoting Jeff Liker, an engineering professor at the University of Michigan. “They can build quality and they can deliver on time.”

Honda, Nissan, and Volkswagen’s Audi brand have all committed to new plants in Mexico within the next five years, along with a new joint-production agreement between Toyota and Mazda. Those manufacturers are going to need convenient, nearby auto-parts suppliers, specifically in plastic resins, automotive sheet metal parts, pneumatic tires, seat fabrics, headlining fabrics, and trunk and floor mats.

At MFI International, we have 30 years experience helping companies set up and establish manufacturing and supply services in Mexico with low overhead. Our shelter services can provide you with local employees, fiscal and accounting control, environmental compliance, permitting, customs, and other start-up services you need to get up and running within two months. Contact us at 866-918-2260 to see how we can position you to take advantage of this manufacturing surge.

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