Mexico’s Auto Industry Continues to Expand

Two car factories recently opened in Mexico with more on the way, showcasing the rapid growth of Mexico’s auto industry. The new automotive plants include Honda Motor Co. Ltd, which opened in Mexico City, and Mazda Motor Co., which is about an hour away.

The expansion of Mexico’s automotive industry has made it the second-largest producer of vehicles in the continent, surpassing Canada. With additional plants in development, Mexico is expected to overtake Canada as the largest exporter of vehicles to the United States by 2015.

In 2010, international investment in Mexico’s auto industry reached a totally of $12.5-billion (U.S.), compared to $3.2-billion in Canada and $29-billion in the United States. According to chief executive officer of ProMexico, Francisco Gonzalez, the industry continues to grow.

He said that Mexico is a top location for automotive production because it offers wages of about $8 an hour, hosts free-trade agreements and has a strong cadre of auto suppliers.