Ferrari Head of North America: Mexico Is The Next China

June 6, 2013

iStock_000008876270MediumForbes, 6/5/2013

Forget the hype about China – Mexico is the next big thing for automakers. “Mexico is the next China,” Ferrari North America CEO Marco Mattiacci said during a panel discussion today about the future of luxury. He was joined by Burgess Yachts CEO Jonathan Beckett and Gotham Jets CEO Gianpaolo De Felice for the hour-long talk, which was held aboard the $40 million yacht KATYA berthed in the Hudson River off New York’s West Side Highway.

Mattiacci said the massive growth anticipated in revenue and manufacturing didn’t necessarily pertain to Ferrari but to a broader 13-year expansion in the auto industry due mainly to dramatic wealth creation, an increased appetite for industry and from considerable investments from abroad. “We see indicators that lot of manufacturing is moving back to Mexico,” Mattiacci said. “The quality of education is absolutely outstanding, and you have a proximity with the U.S. as well. Plus there has been a change of government.”

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Adios Motor City: How Mexico is becoming the world’s best place to make cars

May 10, 2013

iStock_000008876270MediumQuartz, 5/9/2013

Mexico’s auto production has taken a big leap since NAFTA. The country now accounts for roughly 20% of North American light vehicle production, according to a report this month by the Federal Reserve Bank of Chicago, compared with a 6% share in 1990. The country’s cars aren’t only traveling north. Mexico has become the world’s fourth-largest auto exporter an important global auto exporter, and it’s a good market to be in: Climate change and rising gas prices have trimmed margins on automobile sales and prompted a global shift among automakers to more efficient production hubs. Automakers from all around the world are flocking to Mexico to capitalize on the country’s low production costs and export-friendly environment.

The cars that roll off Mexico’s assembly lines are traveling far and wide; Only 63% of Mexican-made cars are exported to the US, and 45% of the exports are made by automakers with headquarters in Asia and Europe. “Mexico is becoming one of the best places to manufacture cars,” said Audi Chief Communication Officer Joe Jacuzzi. How did that happen?

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Mexico: getting some Audi love

May 7, 2013

Audi-Q5Financial Times, 5/6/2013

The auto industry’s love affair with Mexico seems to know no bounds these days. Just days after Japan’s Honda announced the creation of a $470m transmission plant in the country, it was the turn of Audi to laid the foundation stone for a $1.3bn assembly plant in Mexico over the weekend. Aimed at challenging BMW’s global leadership of the international luxury SUV market, the new factory is expected to come on stream in 2016, building 150,000 Q5 SUVs a year. In addition, Rupert Stadler, Audi’s chief executive, said the company is mulling a Q6 version that would double the plant’s capacity.

The plant is being build at San José Chiapa between the city of Puebla and the port of Veracruz, handily located for shipment of vehicles to the US eastern seaboard and Europe. While many of the new investment in Mexico’s export-led auto industry has been heading to the nation’s Colonial heartland and further north, Puebla is a home-from-home for German carmaker Volkswagen, the parent company of Audi.

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Chrysler says Mexico plants idled indefinitely

May 29, 2009

Reuters, 5/29/2009

U.S. automaker Chrysler has suspended operations indefinitely at all five of its Mexican plants, including two car assembly factories, as the company tries to emerge from bankruptcy.

The shutdown began about two weeks ago and there are no plans yet for restarting, Manuel Duarte, Chrysler’s spokesman in Mexico, said on Friday. “We are still monitoring the market situation to see when production can begin again,” Chrysler said in an e-mail statement.

Mexico is one of the world’s top auto producing countries and an industrial powerhouse. The U.S. recession is slamming its economy as Americans cut back on everything from cars to refrigerators.

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VW lays off 800 workers in Mexico

January 29, 2009

BBC, 1/29/2009

vwGerman car manufacturer Volkswagen (VW) has said it will cut 800 jobs at its Mexican plant in Puebla, the site that produces the firm’s Beetle model.

Production in Mexico could be cut by up to 20% this year after VW admitted it was considering further layoffs. The plant employs about 9,400 people.

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GM to temporarily close Mexico plants (in Spanish)

December 12, 2008

La Jornada, 12/12/2008

Automaker General Motors announced this Friday that it will be cutting 30% of its vehicle production and will temporarily close the majority of its North American plants, including three in Mexico. The measure is part of the company’s effort to obtain federal funds to help it survive, after the Senate rejected the financial rescue initiative that was being negotiated for the automaker industry.

The plants affected in Mexico are Ramos 2 in Ramos Arizpe, Coahuila; Silao, Guanajuato; and in San Luis Potosi.

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Recession slams Mexico (in Spanish)

December 10, 2008

El Norte, 12/10/2008

It has not officially been recognized as recession, but data released yesterday show an unprecedented drop of 205,000 jobs in Mexico, inflation of 6.23% and a nearly 20% drop in auto sales.

Data from the Mexican Social Security Institute (IMSS) show that, in just the month of November, 205,698 members of the Institute were no longer members – which include permanent and temporary employees as well as self-sufficient persons.

This is the worst loss for a November since record-taking began in 2000.”

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