The North American auto industry has been in what is essentially a no-growth era since 2008, but that has not stopped our neighbors south of the border from significantly increasing automobile production there. Some would say those gains come at the expense of American autoworkers.
In May, more than 213,000 cars were manufactured in Mexico -- 19.4 percent more than in the same period in 2010. That represents a new record, according to Eduardo Solis, president of the Mexican Association of the Automotive Industry (AMIA). In the same month, vehicle exports rose 21.3 percent. May capped a five-month growth period this year, which saw exports increase 17.1 percent over 2010 figures and 16.4 percent over the 2008 rate. While few would classify Mexico as an industrial giant, the country is the ninth-biggest vehicle producer in the world. It produced a record 2.261 million vehicles in 2010, up 50 percent from 2009, according to AMIA.
That trend is unlikely to stop. Just last week Mazda announced that it will begin construction of a new plant in Guanajuato, Mexico, this fall. Vehicle production will start in the second half of 2013. The investment of $500 million will allow Mazda to produce at least 50,000 cars a year at the plant. In addition, the Daimler Trucks North America plant in Saltillo, Mexico, is including a third shift, adding 479 more manufacturing workers and 32 additional staff workers. This will help meet demand for Freightliner and Western Star trucks. Automotive parts supplier Delphi is investing $11 million and generating 2,000 jobs for a new auto parts manufacturing facility in the state of Durango. It will be the first Delphi plant in that state.
“Because of its manufacturing capacity, Mexico is a very competitive platform for several European and Asian economies that are looking to penetrate or increase their participation in the United States,” says Carlos Guzman, ProMexico’s CEO. “Mexico is a remarkable manufacturing hub for the automotive industry, among others.”
Mexican President Felipe Calderon promises that Mexico will continue to work to promote more investment in the automotive, aerospace, electronic, and manufacturing sectors. There is no doubt that Mexican industry and Mexican workers have benefited from the North American Free Trade Agreement, which was very controversial in the United States.
