Saturday, August 12, 2017
AUG 12 MEXICO IS SIXTH IN WORLD AUTOMOBILE PRODUCTION
Last month, the governor of Augascalientes presided over a special event: The opening of a brand-new Nissan production facility in the capital city. Carlos Lozano de la Torre stood shoulder to shoulder with a handful of representatives from Japan and his full-time Spanish / Japanese translator. The plant is enormous...21 million spare feet of factory will produce 175,000 Nissan Sentras in the first year. They'll accomplish this by never closing the plant. Well...okay...it will be open 23 hours a day, six days a week. Sunday is important in Mexico.
It's not just Nissan that's investing in Mexico. In the neighboring state of Jalisco, Honda recently opened a cavernous facility near Guadalajara. To the north, General Motors runs a plant in Guanajuato. You'll find Chrysler in Toluca and Kia in Monterrey. BMW, Mazda, Mercedes, you name it...they have a factory in Mexico. In terms of dollars, auto manufacturers have invested $22 billion in the last two years alone.
But that's not to say that all cars made in Mexico are shipped to the US. Nope, many are sold in the domestic market. Just ask Volkswagen. Back in 1964, they were the first company to open a factory in Mexico. Their plant in Puebla remains the largest VW plant outside of Germany, employing over 13,000 workers. For decades, their top model was the ubiquitous Beetle. Mexicans fell in love with this car and bought tens of thousands of them. Even today, you'll see tons of bugs on the streets of any Mexican city.