Toyoda Gosei Starts Operation of New Plant in Mexico

05/17/2021

Source: Business Wire

KIYOSU, Japan–(BUSINESS WIRE)–Toyoda Gosei Co., Ltd. (TOKYO:7282) has established a new plant in Mexico, the TAPEX Mexicana, S.A. de C.V. (TAPEX) Monterrey Plant, and started its production of the bags that are a main component of automotive airbags in March 2021. This will help to meet the growing demand for airbags.

In Toyoda Gosei’s medium-term 2025 Business Plan, airbags and other safety system products are a key area that will drive future business growth, and the company is focusing effort on increasing sales to Japanese automakers and other customers. The bags are produced mainly in Mexico and Vietnam to raise cost competitiveness. With the operation of the new plant in Mexico, Toyoda Gosei will increase annual bag production capacity by about 8 million units.

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Mexican government mulls legalization of 18 million “chocolate cars”

traffic cars street traffic jam
Photo by Life Of Pix on Pexels.com

10/23/19 – Freight Waves

By Noi Mahoney

Authorities in Mexico have proposed legislation to legalize around 18 million so-called “carros chocolates,” or chocolate cars – vehicles illegally imported into the country from the United States.

If the proposed legislation passes, it would be a blow to the Mexican automotive industry, which relies heavily on global supply chains from U.S., European and Asian producers to make cars.

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A First: Mexico Imports More Vehicles To U.S. Than Any Other Nation

6/11/19 – Forbes

By Ken Roberts

6-11-19-2

For the first time, Mexico imported more motor vehicles into the United States than any other nation.

According to the latest data from the U.S. Census Bureau, Mexico surpassed Japan for the month of April  to rank ahead of it and Canada. Canada ranked first for all but a few months over the last decade until recently, when Japan was more likely to rank first.

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U.S. trade agency sees 76,000 new auto jobs from North American trade deal

4/17/2019 – Reuters

Capture.PNGWASHINGTON (Reuters) – The Trump administration on Thursday estimated that its new North American trade deal will create 76,000 automotive sector jobs within five years as automakers invest some $34 billion in new plants to comply with the pact’s new regional content rules.

The forecasts from the U.S. Trade Representative’s office were released ahead of an independent trade panel’s hotly anticipated analysis that economists expect to show little or no U.S. gains from the new U.S.-Canada-Mexico Agreement.

A USTR official told reporters that the jobs and investment estimates are based on plans disclosed by automakers to the trade agency for compliance with the new agreement’s tighter rules of origin. These require 75 percent of a vehicle’s content to be produced in North American, with 40-45 percent produced in high wage areas, namely the United States or Canada.

A senior USTR official told reporters that none of the 15 automakers producing vehicles in North America intend to opt out of the agreement to pay U.S. tariffs instead and move production overseas, as some critics of the deal have suggested.

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Why Mess With the U.S. Auto Industry’s Success?

10/16/2017 RealClearWorld

By Duncan Wood

Since the economic crisis of 2008-2009, the U.S. auto industry has been on a tear. Despite the claims of the Trump administration, there are 1 million more cars per year built in the United States now than in 1993. The United States has never before seen such extraordinary automotive production, and the industry has not been this competitive against foreign imports since the 1960s. Between 2009 and 2016, more than 276,000 automotive jobs have been added in the United States (a jump of 41.6% percent), jobs with generous salaries and benefits. Auto-parts producers have also benefited as service providers, as vehicle sales have risen to record levels.

What made this transformation possible? In part it was due to changes demanded by the government in exchange for bailing out the industry, and in part to the opportunity seized by the industry to modernize practices that had held back its competitiveness. But a major factor in the automotive renaissance in America has been the role played by the integrated production system incorporating suppliers and plants in Mexico and Canada, and across the world.

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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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Export Advice: Doing Business in Mexico’s Automotive Industry

07/21/ 2016 Industry Week

automobile.jpgMexico may surpass India by 2020 as the sixth largest vehicle producer globally, according to the Mexican Association of Automotive Industry. The automotive industry accounts for 18% of Mexico’s manufacturing sector and 3% of its national gross domestic product. Mexico’s auto parts industry is closely tied to its American counterpart and economic growth in the United States.Monica Martínez, commercial specialist, U.S. Embassy in Mexico City, discusses opportunities in the below Q&A. Martinez is part of the U.S. Commercial Service’s worldwide network of 108 offices across the United States and in U.S. embassies and consulates in more than 75 countries that help U.S. companies export.

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NAFTA May Have Saved Many Autoworkers’ Jobs

3/29/2016 The New York Times

When Donald Trump threatened to “break” the North American Free Trade Agreement, auto industry workers offered up some of the loudest cheers.

Mr. Trump easily won the Republican primary in Michigan this month. The state, home base for the American auto industry, also delivered an upset victory to Bernie Sanders, the Democratic anti-Nafta standard-bearer.

But the autoworkers’ animosity is aiming at the wrong target. There are still more than 800,000 jobs in the American auto sector. And there is a good case to be made that without Nafta, there might not be much left of Detroit at all.

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Why trouble for Volkswagen made in Germany means Mexico headache

10/8/2015 The Economic Times 

autosAs Germany warns of a disaster for domestic employees of Volkswagen AG, fallout from the company’s emissions-cheating scandal threatens to reach its largest producer of cars for the US: Mexico.

VW has already cut Saturday shifts at its Puebla factory, the largest stand-alone plant making VW brand cars outside of Wolfsburg, where the company is based. That has led to increased concern among the estimated 15,000 workers that jobs may go next.

“Volkswagen messed with all of us,” said Alfredo Rodriguez, 29, who fears his lack of seniority at the factory makes him more vulnerable. The father of two boys 6 months old and 8 years old got a full-time contract only three years ago, and now helps install the wheels on the cars being built. “The thing that worries me most is we don’t know what’s coming.”

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

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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