This is an exclusive preview of the 2015 edition of Mexico Automotive Review. If you want to get all the information, plus other relevant insights regarding the Mexican automotive industry, do not forget to get your tickets for Mexico Automotive Summit 2015.
Missed the first part of the interview? Reread it here.
Q: How does INA work with the government to both support the development of Mexican manufacturers and attract international companies?
A: INA is working alongside the Mexican government to help suppliers develop while offering them support, especially those that are not ISO, TS, or VDA certified. By doing this, we intend to incorporate them into the OEMs and instruct them on processes like molding and injection. The Ministry of Economy is promoting such projects through the National Institute of Entrepreneurship (INADEM), and its main focus is the growth and certification of Mexican companies. In the last three years, 150 corporations have received instruction and certification by the Automotive Industry Action Group (AIAG), which certifies many North American companies. INA offers economic aid for up to 50% of the cost of these processes. We are also working with ProMéxico to attract foreign investment since not all the products that are imported can be produced in Mexico. If we want to use local products, we need to attract companies that specialize in certain types of technology.
Q: What has led automotive companies to migrate from the North Region to the Bajio?
A: Ten years ago, 85% of the vehicles produced in Mexico went to the US, which is why manufacturing plants were being established in the north, further capitalizing on the region’s logistical advantages. Now the percentage has dropped to 65%, and automobiles are increasingly shipped by sea to Europe and South America, through ports like Veracruz, Altamira, and Lazaro Cardenas, which are closer to the Bajio region. Auto parts, on the other hand, travel by truck and train, making it possible to export 95% of the production to the US and Canada. However, assemblers in the Bajio need to have their suppliers close by in order to reduce costs.
Q: As executive president of INA, what are your ambitions until the end of your term?
A: Our main objective is to develop more effective public strategies and create opportunities for the automotive industry. There needs to be an entity that can motivate the government to focus on the need for roads, ports, security, and education, making Mexico a more attractive place for foreign investment. This is the goal that INA, along with AMIA, ANPACT, and AMDA, is striving for. We need to make sure that the government seizes this opportunity by demonstrating the benefits that the automotive industry can bring to the country in terms of technology, economy, and development, as well as the possible areas of improvement to both Mexican industry and the internal market.
In the midst of the success the automotive industry is enjoying, it is our pleasure to invite you to Mexico Automotive Summit 2015 on September 24th, 2015. This event will provide an excellent platform where newcomers and established players can share their perspectives, defining the future of one of the main sectors in the Mexican economy. Whether you are part of the industry’s product or service supply chain, do not miss an excellent chance to be part of this grand event.