Mike Tracey, an automotive industry expert at the Howell, Michigan-based Agile Group, recently visited with the Tecma Group of Companies to examine current investment trends and activities in Mexico’s automotive industry.
During the approximately twenty minute discussion Tracy explains some of the factors that will result in Mexico being the producer of one in six passenger vehicles in North America by the end of 2014.
According to the consultant, “Because of the economic slowdown that occurred as a result of the great recession, companies in the automotive sector needed an expansion solution for the cost-effective replacement of capacity that had gone obsolete during that period. Both OEMs and suppliers have come to view Mexico’s automotive industry as being the best place for the installation of new plant and equipment due to its competitive costs, proximity to major markets and network of free trade agreemments that enhance Mexican product competitiveness over a broad swath of geograhies.”
Much of the new capacity that is being installed in Mexico has been situated in the South Central region of the country that includes the states of Guanajuato, Aguascalentes and Queretaro. Tracy expects that automotive manufacturing in Mexico will thrive and continue to do so in some of the new industry locations where infrastructure is being further developed to handle greater production.
About The Agile Group
The Agile Group is a Howell, Michigan-based consultancy. It specializes in large scale program management for projects in the automotive, aerospace and heavy equipment industries. The company works with OEMs and suppliers world-wide.
About The Tecma Group of Companies
The Tecma Group of Companies, Inc., headquartered in El Paso, Texas provides services that have enabled firms from a wide range of industries to establish and maintain production facilities in Ciudad Juarez, Mexico and beyond, for almost three decades. Under its Mexico Shelter Manufacturing Partnership (MSMP) companies control and focus on their core manufacturing functions, while Tecma tends to their human resource, payroll, accounting, logistics, and other needs that, although important, are not part of the manufacturing process.