Despite fears, Mexico’s manufacturing boom helps some U.S. workers

08/25/16 The Seattle Times

Industrial PlantSAN LUIS POTOSI, Mexico——Enrique Zarate, 19, had spent just a year in college when he landed an apprenticeship at a new BMW facility in San Luis Potosi, Mexico. If he performs well, in a year he’ll win a well-paid position, with benefits, working with robots at the company’s newest plant.

Within a decade or so, most of the BMW 3 series cars Americans buy will probably come from Mexico, built by people like Zarate.

“When you start with such little experience, and get such a big salary, it’s unbelievable,” said Zarate, whose father is a taxi driver and mother is a housewife.

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Mexico Malaise Threatens to Tarnish Pena Nieto’s Ratings Legacy

08/26/16 Bloomberg

A US cable claimed Televisa gave the Mexico State governor Enrique Peña Nieto wide coverageMexican President Enrique Pena Nieto’s track record of winning ratings upgrades is in serious jeopardy.

On Tuesday, S&P Global Ratings revised the country’s outlook to negative and said there’s at least a one-in-three chance of a downgrade in the next two years if Mexico’s debt increases more than forecast. It marked the second time in the past five months that a major ratings company lowered the nation’s outlook. The trend has been mirrored in the swaps market, where Mexico is seen as less creditworthy than peer Peru, as well as lower-rated Panama.

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Michelin starts construction of its 69th plant in Central Mexico

08/24/2016 Economic Times

Industrial PlantGlobal Tyre manufacturer, Michelin Group has begun construction of its 69th global plant yesterday with an official ground-breaking and traditional first stone ceremony held with honored government dignitaries, key customers and company leaders at the new site in Leon, Guanajuato, in central Mexico.

“Our actions here today demonstrate our confidence in Mexico’s manufacturing environment, the skilled and talented workforce here and the infrastructure necessary to deliver tires efficiently throughout North America,” said Jean-Dominique Senard, chief executive officer of Michelin Group, based in Clermont-Ferrand, France.

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Standard & Poor’s Lowers Mexico’s Outlook to Negative

08/23/2016 The Wall Street Journal

mexico cityMEXICO CITY—Standard & Poor’s on Tuesday lowered the outlook on Mexico’s sovereign debt rating to negative from stable, becoming the second ratings firm to do so this year on the belief that government finances could deteriorate in the coming years.

S&P affirmed Mexico’s triple-B-plus rating—two notches above the minimum investment grade—but said there was a 1-in-3 chance of a downgrade in the next 24 months. A deterioration of Mexico’s debt or interest burden could raise the vulnerability of public finances to adverse shocks, the firm said in a release.

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Despite fears, Mexico’s manufacturing boom is lifting U.S. workers

08/21/2016 Los Angeles Times

ensamblaje.jpgEnrique Zarate, 19, had spent just a year in college when he landed an apprenticeship at a new BMW facility in San Luis Potosí, Mexico. If he performs well, in a year he’ll win a well-paid position, with benefits, working with robots at the company’s newest plant.

Within a decade or so, most of the BMW 3 series cars that Americans buy will probably come from Mexico, built by people like Zarate.

“When you start with such little experience, and get such a big salary, it’s unbelievable,” says Zarate, whose father is a taxi driver and whose mother is a housewife.

Read more…

Mexico-U.S air transport deal begins in bid to boost competition

08/21/2016 Reuters

airplaneAn air transport deal between Mexico and the United States that aims to boost competition in the passenger and freight sectors came into force on Sunday, Mexico’s Communications and Transport Ministry said.

The deal, which modifies a 1960 agreement, would open new passenger routes for airlines to fly between the countries and allow for an unlimited number of flights. It also opens up the air freight market to more competition.

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It’s Getting Harder and More Expensive to Make Cars in Mexico

08/14/16 The Wall Street Journal 

Industrial PlantCIUDAD JUÁREZ, Mexico—When car companies began flocking to this border town more than two decades ago, the big lure was labor, which was plentiful and inexpensive.

Today, with an auto-production boom in high gear, those advantages are being chipped away.

Toyota Motor Corp., BMW AG, Ford Motor Co. and several other auto makers have committed to spend a combined $15.8 billion to build new assembly plants or expand existing factories. That is on top of the more than a dozen plants already in operation and billions more being spent by auto-parts suppliers to keep pace.

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