Ford to suspend production for two days at Mexico plant on material shortage

10/08/2021

Source: Reuters

U.S. automaker Ford will temporarily suspend production from Oct. 11-12 at its Hermosillo plant in Mexico because of a shortage of material, the plant’s labor union said on Thursday.

Workers will be paid 75% of salaries on those days, the union added in a statement.

Ford produces its Bronco Sport SUV at the Hermosillo plant in Sonora. It did not specify which materials were in short supply.

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BMW launches new sports car line in Mexico after plant expansion

09/03/2021

Source: Reuters

German automaker BMW kicked off a new production line on Thursday for its Series 2 Coupe compact sports car at the company’s two-year-old factory in central Mexico, doubling down on its Mexican operations in a push to accelerate global sales.

Exports of the new models to North America are expected to begin by the end of this year, with European sales set to start in early 2022, the company said in a statement.

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Mexican Economy Barely Grew in Third Quarter

peso by Guanatos Gwyn

10/30/19 – The Wall Street Journal

By Anthony Harrup

Mexico’s economy barely grew in the third quarter amid weakness in industrial production and a slowdown in services, keeping the economy on track this year for its weakest performance in a decade.

Gross domestic product, a measure of output of goods and services, expanded 0.1% in seasonally adjusted terms from the second quarter, the National Statistics Institute said Wednesday. Industrial production shrank 0.1%, services were unchanged and agricultural production grew 3.5%.

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Mexican manufacturing declines for fourth third straight month

man welding round window frame
Photo by Екатерина Александрова on Pexels.com

10/01/19 – Reuters

By Anthony Esposito

Activity in Mexico’s manufacturing sector contracted for a fourth straight month in September, a survey showed on Tuesday, on the back of deteriorating economic conditions, weak client confidence and soft demand.

The IHS Markit Mexico Manufacturing Purchasing Managers’ Index MXPMIM=ECI stood at 49.1 in September, barely higher than the 49.0 in August, which was the lowest reading in the survey’s nearly 8-1/2 year history.

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How Mexico is winning the car manufacturing war

06/15/15 CBC News

Mexico cars in traffichas been on my mind for a couple of years, ever since I met a Canadian entrepreneur who runs a tomato production company in Canada.

He said in passing that his seasonal workers from Mexico out-pick his Canadian workers by a ratio of three to one. “You must pay by the tomato,” I guessed, imagining only a financial incentive could create such zeal.

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Mexico Sets Auto Production Record, Aims for More

1/8/2015 The Wall Street Journal

autosEnjoying a strong tug from the growing U.S. economy, Mexico’s automotive industry logged record production and exports last year and expects output to rise further in 2015, industry officials said Thursday.

The auto makers produced more than 3.2 million vehicles, a nearly 10% increase over 2013, and exported 82% of them—overwhelmingly to U.S. consumers—said Eduardo Solis, executive president of the Mexican Automotive Industry Association.

With both existing and new factories ramping up, Mr. Solis predicted that Mexico could manufacture as many as 3.5 million light vehicles this year. He calculates annual production will total 5 million vehicles by the end of the decade.

“Mexico without doubt has an automotive sector that is a safe bet,” Mr. Solis said at a news conference.

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Locals Risk Their Lives Fighting Mining in Mexico

MiningIPS, 6/27/2013

Under the 1992 mining law, Mexico has granted around 31,000 concessions to some 300 companies for more than 800 mining projects on nearly 51 million hectares. Most of the companies involved are Canadian, according to the economy ministry’s most recent figures. ProMéxico, the government office dedicated to drawing in foreign investment, and the Economic Commission for Latin America and the Caribbean (ECLAC) report that Mexico is the world’s top producer of silver, in third place for bismuth, fifth for molybdenum and lead, and ninth for gold.

In 2012, the mining industry generated 300,000 direct jobs in Mexico, accounted for seven billion dollars in investment, and represented two percent of GDP, according to official figures. ProMéxico predicts that in 2014, the mining industry’s contribution to GDP will rise to four percent, and that in the next six years, the sector will bring in 35 billion dollars in investment, in a country where 70 percent of the territory has significant mineral deposits, according to official estimates. But local communities have clashed with the mining companies because of the deforestation, water pollution and dumping of toxic liquid waste.

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Mexico aims high with investment in burgeoning aviation industry

private planeThe Guardian, 6/25/2013

The Querétaro Aerospace Park, 200km northwest of Mexico City, is a mass of cranes and diggers. A new Aeroméxico and Delta Air Lines heavy maintenance facility – a joint investment costing $40m, with work for 3,000 specialist technicians – is due to open here shortly. Querétaro airport is just next door, with gigantic hangars built by Bombardier, Eurocopter and Safran, rearing up against the arid landscape dotted with cactuses.

Mexico is determined to become one of the world’s top 10 aviation suppliers. In 2005 Canada’s Bombardier was the first overseas firm to build a $200m factory on previously undeveloped land, transferring production here from Ireland and Japan. Since then it has spent a further $300m in Mexico. The 1,800-strong workforce manufactures parts for the Learjet 85, soon to be followed by components for the Global 7000 and 8000 series.

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Ferrari Head of North America: Mexico Is The Next China

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

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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