Carmakers relying on Mexico for producing quality vehicles at affordable costs

Article by Christian Andrei, on November 19, 2012

More global automakers are relying on Mexico for the production of quality vehicles at affordable costs. For instance, Toyota Motor Corp. is planning to source its cars from the Mexican factory of Mazda Motor Corp. beginning in 2015. Researcher LMC Automotive said that the vehicle output in Mexico is on course to hit a record 2.86 million units in 2012.

There is plenty of other stuff going on in Mexico. Honda Motor Co. is constructing its first big assembly plant in Mexico. Nissan Motor Co. is building a third plant while Ford Motor Co. makes mid-sized sedans. Meanwhile, Volkswagen AG's Audi brand has plans to open the first luxury vehicle plant in the country in 2016.

Jeff Liker, an engineering professor at the University of Michigan, said that throughout a variety of industries, each company in the U.S. will admit that their best plant or at least one of their top plants is located in Mexico.

He explained that these plants in Mexico offer quality products and are prompt during deliveries. Mexico has long been known as a source of low-cost labor but has been evolving and now caters to Japanese carmakers, who want refuge from the strong yen, as well as German and U.S. companies that hope to expand exports to the other parts of Latin America.

Automakers are pouring investment to an area within about 300 miles (483 kilometers) of Mexico City to benefit from the country’s newfound reputation for making quality products. In addition, Mexico's trade agreements that are in effect in 44 countries make it the ideal export platform to send cars out to South America, Asia and Africa, even the U.S. and Canada. Sean McAlinden, a labor economist with the Center for Automotive Research in Ann Arbor, Mich., said that Mexico holds more free trade deals than the U.S.

Topics: mexico

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries