Automotive & Aerospace
From The Report: Mexico 2018
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While renegotiations of the North American Free Trade Alliance (NAFTA) have led to an environment of uncertainty for Mexican industry, the automotive sector remains solid and on track for further development driven by rising vehicle production, local sales and export demand. Mexico is home to 24 carmakers, with manufacturing facilities in 24 states, producing cars, light and heavy trucks and tractors, as well as component parts. In addition, with exports averaging a 15% annual growth rate over the past decade, Mexico is positioning itself as a global leader in the aerospace industry. While ongoing trade negotiations between Canada, the US and Mexico over the future of the NAFTA could potentially have an effect on manufacturing as a whole, major sector stakeholders remain committed to moving forward by strengthening supply chains and integrating production processes. The sector thus looks set to remain on track for further sustained investment. This chapter includes interviews with Mayra González Velasco, President and CEO, Nissan México; and Juan Carlos Corral Martin, President, AeroClúster de Querétaro.

Articles from this Chapter

Overview

Drive on: Auto industry is poised for growth despite bumps in the road
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While renegotiations of the North American Free Trade Alliance (NAFTA) have led to an environment of uncertainty for Mexican industry, the automotive sector remains solid and on track for further development driven by rising vehicle production, local sales and export demand. As the world’s seventh-largest manufacturer and the third-largest exporter of light vehicles – behind Japan and Germany – the sector has maintained its position as one of the top drivers of the national economy, contributing…

Analysis

Steel in front: The auto parts and metal segments continue to drive innovation in Nuevo León’s manufacturing industry
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Nuevo León’s success in metal manufacturing began in the 19th century. Compañía Fundidora de Fierro y Acero built Latin America’s first foundry in Monterrey in 1903. After World War II the manufacturing sector, spearheaded by local metal producers such as Frisa and Deacero, as well as auto parts suppliers like Grupo Alfa, began laying a robust foundation for future growth. Over subsequent decades industrial companies in Nuevo León developed specialised techniques to produce metals and fabricate…

Overview

Taking off: Efforts under way to become a global leader in aerospace
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With exports averaging a 15% annual growth rate over the past decade, Mexico is positioning itself as a global leader in the aerospace industry. According to US aircraft manufacturers Boeing, the number of commercial aircraft around the world is expected to double by 2035, translating into strong demand for manufacturing. This, in addition to the emerging military and space segments, is expected to become a major driver of growth for the sector, especially given the country’s highly skilled, bilingual…

Interview

Vehicle revolution: Mayra González Velasco, President and CEO, Nissan México, on consolidating investment and supporting environmental sustainability
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Interview :Mayra González Velasco What makes Mexico a popular investment destination for the global automotive industry, and how can this position be consolidated? MAYRA GONZÁLEZ: Above all, Mexico has a fantastic geographic location, connecting North and South America, with port access to both the Atlantic and Pacific oceans. This makes it easy to export to both Europe and Asia. Internally, the country has good infrastructure and connectivity between its major cities, easing the transport of products in the supply chain and facilitating export practices. To further consolidate investment, we simply have to build on these positive attributes. Regarding…

Interview

Working together: Juan Carlos Corral Martin, President, AeroClúster de Querétaro (ACQ), on collaboration among key industry players to foster national growth
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Interview :Juan Carlos Corral Martin With the aerocluster model being replicated in other regions such as Baja California, how is collaboration among institutions being encouraged? JUAN CARLOS CORRAL: Aerospace is one of the three most dynamic industries in Mexico, and according to the Mexican Federation for the Aerospace Industry, it is expected to grow by 11% in 2017. Each state wants its own cluster and tries to replicate the model, leading to an unbalanced dispersion of business opportunities…