Mexico: Paradise for carmakers

Mexico has become the 4th largest auto exporter in the world, and accounts for about 20% of the total number of cars produced in North America annually.

According to the latest report from the Federal Reserve Bank of America in Chicago in May, the automobile industry in Mexico has had a leap since the country participated Agreement North American Free Trade (NAFTA ). Specifically, Mexico now accounts for about 20% of the cars produced in North America, much higher compared to 6% in 1990.
Also, according to Business Insider, Mexico has become the 4th largest auto exporter in the world. The car manufacturers are increasingly penetrating the North American country to take advantage of labor costs, lower production costs as well as a healthy business environment. Besides, the export cars from Mexico also are reaching out far and wide, not only in the encapsulated area. 63% of cars produced in Mexico are exported to the U.S., and 45% of export earnings come from the company from Asia and Europe.
"Mexico is becoming an ideal place for car manufacturers." Said Joe Jacuzzi - Audi representative said. According to him, the biggest advantage of Mexico's land prices and labor costs here are cheap (even cheaper than China). Furthermore, geographic location can call the "prime" as the connection point of American States, and have very long borders with the largest economy in the world, as well as important auto market U.S. is giving Mexico a small advantage.
In addition, NAFTA has helped Mexico has free trade agreements more. At the same time, North American countries also have a free trade agreement with the EU, which saves 10% compared to the U.S. tariffs. "This is where the growth rate in the hottest decade", CEO of consulting firm IHS Automotive said Michael Robinet.
The impact of the Japanese yen is also a factor affecting the Mexican market. Because the yen is rising against the dollar caused the Japanese automaker to increase production outside national territory in order to maintain their competitive advantage in the U.S., where Toyota and Honda are reaping many benefits profit.
The amount of cars produced in Mexico in January 4/2013 has increased by 15.6% over the same period. According to data from research firm LMC Automotive, vehicle assembly capacity of Mexico hits record 2.86 million vehicles in 2012. Within 2 years, the total amount of investments from the carmakers in Mexico has reached $ 7.8 billion. A host of big names have all been moved to Mexico for the long term. Specifically, Honda plans to build assembly plants first large-scale, while, Nissan added the 3rd plant, car maker Ford sedan and Audi has announced plans to build factory The first cars to this country in 2016.
With these advantages and the fact that Mexico is becoming a haven for car manufacturers worldwide.