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China,” he points out, not to mention all the major American carmakers and the European luxury automotive manufactur- ers. And the attraction is mutual, according to Rosales: “Mex- ican workers want to work in these important companies.”
A career at an international manufacturer can give an entire family a better standard of living.
MOVING PAST MAQUILADORAS
The coveted auto industry jobs of today mark a significant shift away from the days of the maquiladora system, which birthed Mexico’s auto industry. Maquiladoras succeeded
in attracting foreign investment with tax breaks and other incentives, but they were criticized for creating low-value jobs that added little to the local economy.
Ricardo Haneine, a Partner at A.T. Kearney Hispano-Amer- ica, reports that the country’s automotive industry is now competing in a higher-tech echelon. Today, Mexico manufac- tures complex systems like powertrains, as well as assembling vehicles, but he adds that “there is opportunity to continue developing Mexico’s talent competencies and skills in the sector that will allow it to increase its productivity.”
GAINING GLOBALLY AND AT HOME
Mexican factories produced 3.5 million cars and trucks in 2015. By 2020, that number is expected to exceed five million vehicles, a mark that could push Mexico past India to become the sixth-largest vehicle producer in the world. Mexico is al- ready the Latin American leader in the category. As of the end of 2016, 11 OEMs had manufacturing operations in Mexico,
with a number of major players expected to open or expand plants by the end of 2019. Kia opened its first Mexican plant in Pesquería, Nuevo León, in late 2016, and Audi recently be- gan manufacturing its Q5 model in San José Chiapa, Puebla.
Eight out of every 10 vehicles manufactured in the country are destined for export, with the rest sold domestically. The vast majority of Mexico’s automotive exports of light vehicles, 72.2 percent, end up in the United States, followed by Cana- da, Latin America, and Europe. Still, Mexico’s domestic auto market is growing quickly. Sales spiked in 2015 and are con- tinuing to rise. Although the country has traditionally seen its highest demand in compact and subcompact cars, sales of luxury cars and hybrids are expected to increase significantly, in part due to the arrival in the market of manufacturing operations from premium carmakers like Audi and BMW.
SUPPLY SUCCESS
Even as Mexico boosts its profile as a vehicle assembly hub, the country’s roots in auto parts manufacturing continue to play a major role. Mexico’s automotive manufacturing and parts industries received a total of US$5.75 billion in foreign investment in 2015. Three billion dollars went to the auto parts segment; most of the rest was in support of light vehicle assembly. The value of Mexico’s parts production sector has nearly doubled since 2009, from US$41.2 billion to US$82 billion in 2015; that number is expected to reach $US100 billion by 2020.
Eduardo Tamer, CEO of the auto-parts maker Mikel´s, sees opportunity for additional growth by leveraging the country’s
Commitment and Vision
We combine decades of successful oil and gas experience in Mexico with the best practices of US exploration and production technology.
The result: efficient, effective exploration and production of oil and gas in Mexico under the new Mexico Energy Reform.
www.mexicopetroleumcompany.com
222 Paseo de la Reforma, Level 18, Col. Juarez, Mexico City, 06600 Phone: +52 (55) 1253 7188 Fax: +52 (55) 1253 7090 william.waggoner@mexicopetroleumcompany.com
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