Audi Said to Plan Cost-Growth Reduction of $2.5 Billion

October 8, 2014

10/08/14 Bloomberg

Audi-Q5Audi has a 22 billion-euro investment budget for the next five years, with 70 percent of the spending going toward new products and technology. Most of the rest is allocated to expanding manufacturing capacity, including new plants in Brazil and Mexico.

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GM Moving Cadillac SRX Production to U.S. From Mexico

August 28, 2014

08/27/14 The Wall Street Journal

autosGeneral Motors Co. on Wednesday said it would invest as much as $185 million to build small engines at its Spring Hill, Tenn., factory and move production of its Cadillac SRX crossover vehicle to the facility from Mexico, capping a multiyear shift by the auto maker to bring more work back into its unionized U.S. factories.

Production of the about $40,000 SRX, now assembled at the Detroit auto maker’s Ramos Arizpe, Mexico, factory, will move to the former Saturn division facility in late 2015 with the launch of the second generation SRX. The car should arrive in showrooms in early 2016.

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Kia Will Spend More Than $1 Billion on Mexico Auto Plant

August 27, 2014

08/27/14 Bloomberg

manufacutiringKia Motors Corp. (000270) plans to build its first assembly plant in Mexico as the South Korean automaker follows European and Asian rivals in adding regional production.

Mexican President Enrique Pena Nieto said today the company will invest more than $1 billion in the factory and attract another $1.5 billion from Kia suppliers in Mexico. The plant will produce 300,000 vehicles a year and be completed in the first half of 2016, Kia Vice Chairman Lee Hyoung-Keun said at an event with Pena Nieto in Mexico City.

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Manufacturers Love U.S., Mexico

August 20, 2014

08/19/14 Forbes

manufacutiringWe’ve been hearing this for the past three years: multinationals are moving to the U.S. to manufacture goods of all kinds. China’s days as the globe’s low cost producer are over. Hurrah for labor.

Not so fast.

One reason why manufacturing is returning to the U.S. is stagnant wages. Other reasons are because of logistics, location to other markets the manufacturer is targeting, and high productivity due to automation.

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America’s Car Capital Will Soon Be … Mexico

August 20, 2014

This story appears in the September 8, 2014 issue of Forbes

mexico-carsEverything you need to know about the future of the global auto industry is printed on the business cards of Carlos Lozano de la Torre, governor of Aguascalientes, Mexico, a central province named for its abundance of hot springs.

Seated at an enormous round table inside the ornate 17th-century government palace where he has his office, he reaches into the side pocket of his dark gray suit and shuffles through a stack: Here’s one version in German, another in Chinese, another in English. “I have them in ten languages, but I only speak Spanish,” he says with a chuckle as he hands over the English version.

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3 Reasons To Near-Source Your Business To Mexico

August 18, 2014

08/18/14 Forbes. By Deanna Cioppa

manufacutiringAs the cost of outsourcing manufacturing to China levels out with the United States, companies are looking for new places to set up shop—locations with competitive labor costs, optimal transport options and an open trading environment—and finding them much closer to home in sunny Mexico. There’s a lot that’s attractive about America’s neighbor to the south that may drive American manufacturing from China to just next door: A stable economy protected by government policy, a robust telecomm infrastructure and abundant natural resources. Regulation and macro-economics aside, part of what’s attracting foreign trading to Mexico is a combination of where it is, who lives there and who they trade with.

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Is Industrial Mexico A Friend Or Foe To The U.S. Auto Sector?

August 18, 2014

08/18/14 By Nathaniel Parish Flannery. Forbes

autosOver the last 20 years Mexico has emerged as a major automotive exporter. While Detroit has struggled to sustain itself as a world-leading automotive hub, Mexico has quietly become the world’s fourth largest automobile exporter. Chrysler builds HEMI engines and Ram pickup trucks in Saltillo, a city located 350 miles south of San Antonio in the Mexican state of Coahuila. General Motors builds Silverado pickup trucks in the state of Guanajuato, north of Mexico City. Mexico is actually home to North America’s largest car factory, a Volkswagen facility in Puebla that employs more than 16,000 people and produces more than 500,000 cars a year. Audi working on a billion dollar facility in Mexico. BMW and Nissan both have plans for billion dollar plants south of the U.S. border. Eric Farnsworth, the Vice President at the Council of the Americas in Washington D.C., told me “Investors see Mexico as an export platform with access to the United States.” While some observers may see Mexico’s auto industry as a threat to U.S. automobile production, a growing chorus of voices is advocating the concept of North American competitiveness.

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