Our friends at the law firm of Cacheaux, Cavazos & Newton recently released the December edition of their Mexican Automotive newsletter (to subscribe to the free online newsletter, click here). It is well worth a read for all interested in the TMASC corridor and automotive manufacturing in Mexico.
Among other stories, the newsletter notes Motor Trend’s selection of the made-in-Mexico Ford Fusion as 2010 Car of the Year and highlights a Mexican government initiative similar to the Cash for Clunkers program that created a sales boost in US auto markets. Importantly, the editors of the newsletter also sound an optimistic note about the future of automotive manufacturing in Mexico, even in the midst of a “grim economic scenario.”
[T]he automotive industry has not lost its characteristic resilience and momentum. With a clear outlook that the current difficult economic conditions are only temporary, the automotive companies that have selected Mexico as a recipient of their investments continue with their plans to expand and implement technological innovations. All companies now seem committed, without exception, to sustainable development, protection of the environment and the development of new models that reduce or eliminate vehicle emissions. Such developments augur a promising future for Mexico’s automakers and auto parts industries, in spite of Mexico’s lackluster macroeconomic statistics.
This outlook is neither naive nor anecdotal; one need look no further than the headlines of Maquila Portal to see the continued investments in Mexico by automotive giants. In November alone we learned that Tier I supplier Magna would double the workforce at its Saltillo plant and that Nissan would spend US$200 million to prepare its Aguascalientes, Cuernavaca, and Morelos plants (locations just West and South of the TMASC region but certain to enjoy the benefits of proximity to the corridor) for new mini-car production.
Without a doubt, times are tough in Mexico. But continued foreign investment demonstrates the power of regional industry clusters like TMASC to help sustain and grow existing and new enterprises even amid economic turmoil.