Mexico is on track to replace the Asian automotive giant, Japan, as the second-largest exporter of cars to the United States by the end of the year.
An $800 million Honda plant opening on Friday in the central state of Guanajuato will produce about 200,000 Fit hatchbacks a year, helping push total Mexican car exports to the US to 1.7 million in 2014, roughly 200,000 more than Japan, consulting firm IHS Automotive says. And, with another big plant starting next week, Mexico is expected to surpass Canada for the top spot by the end of 2015. ‘It’s a safe bet,’ said Eduardo Solis, president of the Mexican Automotive Industry Association.
‘Mexico is now one of the major global players in car manufacturing.’ Experts say Mexico’s relatively low wages, closeness to the US and free-trade deals with more than three dozen nations have made it one of the favorite locations for international automakers to invest since the 2008 global recession and rising energy and shipping prices forced companies to find ways to cut costs. Despite Mexico’s surge, the vast majority of the cars and trucks made in North America, are still produced in the US for domestic consumption and export to other countries.
An $800 million Honda plant opening on Friday in the central state of Guanajuato will produce about 200,000 Fit hatchbacks a year, helping push total Mexican car exports to the US to 1.7 million in 2014, roughly 200,000 more than Japan, consulting firm IHS Automotive says. And, with another big plant starting next week, Mexico is expected to surpass Canada for the top spot by the end of 2015. ‘It’s a safe bet,’ said Eduardo Solis, president of the Mexican Automotive Industry Association.
‘Mexico is now one of the major global players in car manufacturing.’ Experts say Mexico’s relatively low wages, closeness to the US and free-trade deals with more than three dozen nations have made it one of the favorite locations for international automakers to invest since the 2008 global recession and rising energy and shipping prices forced companies to find ways to cut costs. Despite Mexico’s surge, the vast majority of the cars and trucks made in North America, are still produced in the US for domestic consumption and export to other countries.