Several OEM and Tier 1 announcements made it solid week for automotive. Not only did Gestamp inaugurate a new facility in San Luis Potosi but Ford will shift production of Transit Connect from Spain to Mexico and the company’s plant in the State of Mexico will produce a new all-electric SUV inspired by Mustang. Volkswagen is bidding farewell to the Beetle with a final edition of this all-time Mexican favorite and the savings obtained from the integration of Mitsubishi to the Renault-Nissan auto alliance will help Nissan strengthen its Mexico operations.

It was also a positive week for Mexico’s automotive trade. The country will return to free trade on vehicles with Brazil but these cars must meet the new regional content of 40 percent to be eligible for tariff advantages. The Mexican MOFA announced that embassies are ready to take over the late ProMéxico’s promotional activities and that USMCA has raised interest in Mexico among automotive companies abroad. According to BMW, USMCA will promote the development of suppliers in the bloc.

Concerning sales, AMDA data show the vehicle market in the Bajio region recovered in January. The most dynamic state in that month was Aguascalientes with a 19.1 percent sales increase. Meanwhile, the introduction of Renault’s new SUV KWID is projected to help the company increase its annual sales by 16 percent and Vende Tu Auto reported that Mexican women prefer mini-SUVs.

Rev your engine. This is the week in automotive!

Volkswagen New Beetle by Harishwar 7070. CC BY-NC-ND 2.0

Mexico’s Automotive Drive

Spanish automotive supplier Gestamp has inaugurated a new factory in San Luis Potosi. The company will produce chassis and body components for several OEMs.

The integration of Mitsubishi to the Renault-Nissan auto alliance has allowed global savings of US$6 billion, which will help strengthen Nissan’s Mexico operations.

Ford will shift the production of the Transit Connect van from Spain to Mexico in 2021.

Ford will produce an electric SUV inspired on Mustang at its plant in the State of Mexico by 2020.

Volkswagen has launched the last version of Beetle to ever be produced.

Profeco announced an alert on mechanical problems in eight Volkswagen and Audi vehicles.

DiDi Chuxing has announced the expansion of its car-sharing services to four new cities: Aguascalientes, Zacatecas, Ensenada and La Paz.

A Break from Depressed Auto Sales

Sales of new vehicles in the Bajio region recovered in January. According to data of AMDA, Aguascalientes led the recovery with a year-on-year sales increase of 19.1 percent.

Renault projects to increase its sales in Mexico by 16 percent to 32,300 vehicles in 2019. The company is betting on its new KWID SUV to achieve this growth.

According to Vende Tu Auto, Hyundai Creta, Honda HR-V and Seat Arona and other mini-SUVs are the preferred vehicles of Mexican females.

SEAT Arona – Driving Down The Road – Rolling Shot – Free Car Picture – Give Credit Via Link by Motor Verso. CC BY 2.0

Trade and World-Class Mergers

According to the Ministry of Foreign Affairs, USMCA has raised interest in Mexico among automotive companies.

BMW expects USMCA to promote the development of new suppliers in North America that can eventually support its new assembly plant in San Luis Potosi.

On Tuesday, Mexico and Brazil returned to free trade on vehicles. The new rules of origin require a regional content of 40 percent, which could lead to greater integration between both economies.

Comments of a possible merger with Peugeot have caused the stocks of FCA Group to soar.

Logo on a Peugeot 407SW Evente by stratman2. CC BY-NC-ND 2.0

Don’t forget to follow us on twitter at @mexautomotive and @mexautomotriz for the latest industry news.

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