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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Parts with passports: how free trade drives GM’s engines

automobile car drive grass
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11/18/19 – Reuters

By Nick Carey

Long before the pistons for General Motors Co V-6 engines reach the U.S. No. 1 automaker’s Romulus, Michigan plant, they are seasoned international travelers.

Powdered aluminum from Tennessee is shipped to Pennsylvania and forged at high temperatures into connecting rods for the pistons, which are then sent to Canada to be shaped and polished. They are then shipped to Mexico for sub-assembly and finally the finished pistons are loaded onto trucks bound for Romulus to become part of a GM V-6 engine.

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Mexico’s auto production and exports drop sharply, battered by Ford

aerial view of parking lot
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11/06/19 – Reuters

By Julia Love and Sharay Angulo

Mexico’s auto production and exports fell sharply in October compared with the same month last year as production from U.S. automaker Ford Motor Co ground to a halt, according to data from the national statistics agency INEGI.

Auto production declined 16.35%, while exports dropped 19.52%, the data showed.

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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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GM lays off 6,000 additional workers in Mexico due to UAW strike

 

aerial view of parking lot
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10/01/19 – CNBC

By Michael Wayland

General Motors on Tuesday idled a plant in Mexico that produces its highly-profitable Chevrolet Silverado and GMC Sierra 1500 pickups, temporarily laying off 6,000 workers.

The automaker said the decision was a result of a parts shortage due to the United Auto Workers union’s strike against GM, now in its 16th day. A GM spokesman said the “primary focus is to get a deal and get everybody back to work” as soon as possible.

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Mexican manufacturing shrinks for third straight month to lowest since 2011

 

09/02/2019 – Reuters

By Anthony Esposito

carmanufacturing

Activity in Mexico’s manufacturing sector shrank for a third consecutive month in August, a survey showed on Monday, as weakening domestic demand and subdued business sentiment weighed on Latin America’s second-largest economy.

The IHS Markit Mexico Manufacturing Purchasing Managers’ Index MXPMIM=ECI stood at 49.0 in August, sliding to the lowest reading in the survey’s nearly 8-1/2 year history and down from 49.8 in July.

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Japan auto parts supplier: Mexico expansion on hold pending NAFTA

07/10/18 Reuters

automobileJapanese auto components supplier Jtekt Corp said it was holding off on expanding production in Mexico, awaiting the outcome of talks over the North American Free Trade Agreement, known as NAFTA.

The auto industry has been plagued by uncertainty since U.S. President Donald Trump last year launched a renegotiation of NAFTA, seeking to repatriate manufacturing jobs to the United States. Jtekt President Tetsuo Agata said prospective automaker clients were waiting for the outcome of the talks before making new decisions on their Mexico operations.

“They are watching the NAFTA situation carefully. So we also have to hold off on new production plans,” he told reporters at its Nagoya headquarters. Jtekt is a Toyota group supplier which manufactures vehicle steering systems.

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Mexican Auto Industry Opposes Latest U.S. Proposal on Nafta Rules

04/30/2018 The Wall Street Journal

automobileMexico’s auto manufacturing industry on Monday rejected a proposal presented last week by U.S. trade authorities that would impose new rules on the origin of components used in cars and pickup trucks sold tariff-free under the North American Free Trade Agreement.

Last Thursday in Washington, the U.S. Nafta negotiating team presented a proposal requiring 40% of the parts used in light vehicles and 45% of parts used in pickup trucks to originate in high-wage countries, according to Eduardo Solis, president of the Mexican Automotive Industry Association, known as AMIA.

Mexico’s Economy Picked Up Pace in First Quarter

04/30/2018 The Wall Street Journal

digital economyMexican economic activity accelerated in the first quarter, growing at its fastest rate in six quarters as industrial production recovered and services picked up pace.

Gross domestic product, a measure of output in goods and services, expanded 1.1% seasonally adjusted from the fourth quarter of 2017, the National Statistics Institute said Monday.

The increase, which translates into an annualized rate of 4.6%, was the highest since the third quarter of 2016, and above the 0.8% expansion in the previous quarter.

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Secretary Ross and the Commerce Department Wrongly Conclude NAFTA Rules are Bad for the U.S.

10/4/2017 Forbes

Flag_of_the_North_American_Free_Trade_Agreement_(standard_version).svgBy Luis de la Calle

U.S. Secretary of Commerce Wilbur Ross published an important op-ed (These NAFTA rules are killing our jobs) in the Washington Post this past Friday, September 22nd.  In it, he claims to offer a serious analysis to show that the trade deficit with Mexico and Canada and lower U.S. value-added in Mexican and Canadian U.S. imports are proof the United States is losing under the North American Free Trade Agreement (NAFTA).  Secretary Ross aims to end the “loose talk” about industrial integration for automobile production in the region.

The problem with the article and the U.S. Department of Commerce paper it is based on is that they cherry pick statistics out of the March 2017, Trade in Value-Added (TiVA) database by the Organization for Economic Cooperation and Development (OECD), in an attempt to confirm the Trump’s administration bias that trade deficits are bad and lead to job losses.  This wrongheaded approach (the trade deficit with Mexico does not harm the United States) does a growing disservice to the comprehension of the importance of international trade for the economy and further politicizes the issue. More worryingly, it shows civil service officers can be influenced so that their analysis comports with White House views on trade.

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