Latin America’s FDI attraction increased on a year-to-year basis for the first time in the last five years. Attracted by the force of the region’s manufacturing and services industries, 13.2 percent more FDI reached Latin America in 2018 than in 2017 with Brazil and Mexico taking the lion’s share. The dark side is, Honda will shut down its Argentina operations in 2020. INA highlighted the importance of a ProMéxico-like agency to develop an environment that boosts FDI attraction.
In Puebla, Volkswagen and the new state government led by Miguel Barbosa plan to join forces to boost the development of the local automotive industry. There is also a new hope for the arrival of investment projects to the state as South Korean suppliers met with local authorities to learn more about the state’s competitive advantages. Meanwhile, Volkswagen granted a 5.78 wage increase to its unionized workers despite recent production reductions and a generalized sales downturn.
In Mexico City, Uber entered the bike sharing services with Jump, which offers users the posibility to access electric bicycles from the Uber app starting on August 14. Ernesto Hernández will be succeeded as President and CEO of GM México by Francisco Garza, former Vice President of Sales, Service and Marketing, and more states are expected to join the Center-Bajio-West Alliance shortly as it prepares to launch its first formal actions and bring balance to the region’s FDI attraction.
Before jumping into the news, don’t forget to check out our Interview of the Week. The 17 million vehicles assembled in North America annually are behind the strength of Mexico-based component manufactures. However, USMCA will bring new challenges and opportunities for the Mexican auto parts industry. Find out what Óscar Albin, Executive President of INA, has to say about this.
The road is clear. Go ahead!
Bittersweet Week for the Latin American Industry
Óscar Albin, President of INA, highlighted the need to create a business-friendly environment that boosts FDI attraction. He added that the creation of a new ProMéxico is necessary to achieve this.
Puebla’s Automotive Momentum