Automotive Manufacturing in Mexico
In 1910, Daimler and Renault were the first companies to establish assembly operations in Mexico, but that was short lived due to the Mexican Revolution which took place the same year. In 1921, Buick began assembling its automobiles in Mexico, followed by Ford Motor Company in 1925.
Well over 3.2 million automobiles are projected to be produced in Mexico by the end of 2014, ranking Mexico the eight-largest automobile producer in the world.
Currently, eight automotive OEM’s have a manufacturing presence in Mexico, with a combined 19 plants located in various parts of the country. Here is a snapshot of the Mexican Automotive Industry:
|Chrysler||3||Engines, RAM, Promaster, Journey, Fiat 500|
|Ford||3||Fiesta, Fusion, MKZ, Hybrids, Engines, Foundry|
|GM||4||Cheyenne, Silverado, Sierra, Aveo, Trax, and others. Engines and transmissions|
|Nissan||3||Pickups, Frontier, Tsuru, Tiida, NV200, YorkTaxi, Versa, others|
|Volkswagen||2||Beetle, Classic, TDI, Jetta, Golf, High tech engines|
KIA and BMW have recently announced manufacturing facilities in the State of Nuevo Leon and San Luis Potosi respectively.
The areas of Mexico with the highest concentration of automobile manufacturing in Mexico include:
- The area around the city of Saltillo (Saltillo, Ramos Arizpe, and Derramadero) with the presence of several plants owned by GM and Chrysler/Daimler/Fiat.
- A corridor in the State of Guanajuato consisting of the cities of Leon, Silao, Irapuato, Celaya, and Salamanca.
The long time presence and most recent growth of automotive manufacturing in Mexico is the result of the lowest labor cost structure in North America, OEM venue diversification strategies, and a rapidly growing skilled workforce.
Our Manufacturing Communities serve as an ideal venue for small and medium sized tier 2 and 3 suppliers because of the scalability of facilities and a shared-services business model that allows clients to take advantage of economies of scale from day one. Other advantages include a legal framework that allows foreign companies to operate for four years without needing to establish permanent operational status and being assessed income taxes based on their manufacturing activity in Mexico.