The White House has postponed by six months its decision to impose tariffs of 25 percent on vehicle imports, which gives more breathing space to OEMs and suppliers exporting to that country. Meanwhile, Brazil plans a new trade mission targeting the auto parts industry in the Bajio region. According to CAMEBRA, Brazilian companies are interested in working with Mexican players. According to a study of the Mexican Ministry of Economy, Mexico’s central region is the most attractive for German FDI, with Puebla being the biggest destination for such investments. Mexican OEM Giant Motors will ramp up its operations in Ciudad Sahagun to assemble more JAC cars as the brand prepares to launch two new units in Mexico.
This was an interesting week for e-mobility in Mexico. BMW inaugurated its EV-charging corridor with six charging stations between Mexico City and San Luis Potosi. Additionally, the state of Jalisco has put in place several policies that incentivize the creation of a supply chain for e-mobility, though the penetration of electrified cars in the state is still small.
Rev your engine. This is the week in automotive!
Trade, Investment and Growing Operations
Mexico’s central region is the favorite destination for German FDI in the country. Puebla, State of Mexico and Mexico City received US$6.7 billion in investments between 2013 and 2016.
Giant Motors Latinoamérica plans to double the production of JAC vehicles in Ciudad Sahagun as the company plans to launch a new SUV (SEI4) and a new pickup truck (FRISON T8).
Mexico is among the Top 10 most important markets for Mitsubishi Motors. The brand sees great potential in the country since joining the Renault-Nissan Alliance.
Industrial developer Vesta inaugurated a new industrial park in San Luis Potosi with the goal of serving clients like BMW and GM.
Mexico’s Electric Drive
Though the state government of Jalisco has vowed to bet on electric mobility, electrified vehicles have a minor share in the state’s vehicle park.
Challenging Automotive Environment
Ford recalls more than 3,700 Fusion cars in Mexico due to a bushing that could prevent the transmission from coupling gears correctly.