Covering the Industry's Economic, Legal & Financial Issues

MexicanAutomotive covers the Mexican automotive and auto parts industries, and is published monthly in English and Spanish. MexicanAutomotive reports on general Mexican automotive industry topics, as well as economic, financial and legal issues affecting the North American automotive industry. Published by Cacheaux, Cavazos & Newton (CCN), subscriptions to MexicanAutomotive are free. CCN is an international law firm with offices in Texas and Mexico. The firm provides legal services in many practice areas including Automotive law to clients doing business in the NAFTA region. | English
News on General Motors de México E-mail

General Motors de Mexico has been operating in Mexico for the past 80 years. It currently has 15,000 employees and has plants in the city of Toluca, State of Mexico; Silao, Guanajuato; Ramos Arizpe, Coahuila; and the city of San Luis Potosí, S.L.P. Its corporate offices are located in Mexico City. General Motors brand vehicles include the Chevrolet, Buick, GMC and Cadillac automotive lines.

More information on General Motors in Mexico may be found at the website

Uber in Mexico City E-mail

Uber's modern system of transport that has caused an uproar in certain parts of the world and has been prohibited by various cities, with one notable exception being Mexico’s capital. The taxi transport system in Mexico City has traditionally been chaotic and, at times, inefficient, expensive, unsafe and potentially dangerous. For all these reasons, the arrival of a new taxi paradigm has caused a commotion among transit users and the consequent disapproval by the taxi driving community, which has opposed Uber’s operation. Uber has created somewhat of a revolution in transport for hire taxi services. Uber’s cars are generally new, do not allow smoking and are driven by friendly and attentive drivers, without the need to tip and with the

convenience of paying electronically using a credit card. Perhaps most importantly, Uber transport is less expensive than traditional taxis. Now, Uber has announced, as a part of its business plan and an Alliance with an innovative insurance company, an insurance product for privately driven vehicles. The recently launched product takes into account a driver’s potential civil liability for his or her passengers. The flexibility of this system, which is being operated through a new insurance company, will lead to a more attractive and safety oriented Uber service in Mexico City. Other Mexican cities such as Guadalajara and Tijuana already have Uber service.

Mexico City Adopts New Transit Regulations E-mail

Mexico City’s Federal District government has adopted new transit regulations for the Federal District. The new regulations were issued to go into effect on January 1, 2016, but provide motorists with advance notice in order to understand their contents and ensure compliance. Among the most notable provisions is an increase in motorist fines ranging from 10 – 15%, and a reduction of speed limits on the city’s main thoroughfares, which will be reduced from 70 kilometers per hour to 50 kilometers per hour. Other changes emphasized in the Regulations include a restriction on the use of cellular telephones by drivers, so that fines for this infraction may now reach $2,448 pesos. New restrictions on use of car horns will also apply, which has become a significant problem for Mexico City residents. Fines for improper use of a car horn, which will not apply if one is using a car horn to avoid an accident, will range from $349 to $699 pesos and include the imposition of penalty points against one’s driver’s license. Given the adjoining geographic location of the Federal District and the State of Mexico, it is expected that officials will attempt to harmonize the new Federal District regulations with those currently in effect in the State of Mexico. The debate over the new regulations will surely serve as a hot topic among local motorists, motorcyclists, public transit users and cargo haulers.

Mexico-Japan Automotive Cooperation Program E-mail

The Mexican state of Nuevo Leon’s Economic Development Department (Secretaría de Desarrollo Económico del Estado de Nuevo León or SEDEC) and the Japanese Agency for International Cooperation (JICA) have created an ambitious program to strengthen the operations of automotive companies known as “Tier 2”, which provide key parts and raw materials to the automotive supply chain, and is designed to improve training and certification required in this growing industry. The purpose of the program is to increase the competitiveness of Japanese and Mexican companies through a supplier development framework. One should also keep in mind that Mexico and Japan have been working on a collaboration agreement to strengthen the automotive sector in the Mexican states of Queretaro, Nuevo Leon and Guanajuato. The collaboration consists of providing training resources to small and medium sized companies in order to convert them into successful automotive parts suppliers. Another purpose is to improve the cost and quality of Mexican components. During the presentation of the program, officials noted a specific example: Of the 55 components necessary to manufacture a door lock assembly, half of such components are manufactured internally, while the other half come from external suppliers. Mexican components currently comprise only 15% of the total content, while the other 35% originate outside of Mexico. This presents a challenge but, at the same time, an opportunity, as shown by the objectives being pursued by the cooperation program initiated by Japan and the Nuevo Leon state government.

Automotive Statistics E-mail

July 2015: Production, Sales and Exports


* Sales of light vehicles in Mexico grew 16.1% during the month of July 2015 as compared to the same month last year.


* Mexican production of light vehicles fell 2%, in July 2015 over the same month from the previous year, registering a total of 254,312 units produced.


* Cumulative automobile production in Mexico from January through July 2015 totaled 1,981,869 light vehicles, reaching an historic high and representing a 6.7% increase over the same January – July period in 2014.


* Mexican vehicle exports in July 2015 decreased 2.3% over the same month last year. Exports totaled 226,511 units.


* For the cumulative period of January through July, exports grew to 1,631,969 units, representing an 8.4% increase in exports over the same period in 2014.


* The first seven months of 2015 saw exports increasing to Europe, Canada and the United States. Exports to Latin America, Africa and Asia showed a slight decrease. The top destination of Mexican vehicle exports continues to be the NAFTA region. Such exports to the United States and Canada represent 81.7% of all Mexican vehicle exports.


* Principle destination of Mexican exports by country include United States (70.7%), Canada (11.0%), Brazil (2.8%), Germany (3.9%), Colombia (2.1%), China (1.6%), Argentina 1.5%) with the remaining 4.9% being exported to Saudi Arabia, Chile, Aruba and other destinations.


* Domestic auto sales in Mexico continue to rise to historic levels. In July, domestic sales reached 111,714 vehicles, which is 16.1% over the same month in 2014.


* In the United States, 79,989,093 light vehicles were sold between January and July, 2015, showing a 4.6% increase over the same period in 2014.

Collaboration between the Mexican Government and the Business Organization AMIA E-mail

The Mexican Automotive Industry Association Asociación Mexicana de la Industria Automotriz (AMIA) recently signed an important agreement with the Mexican government concerning issues related to energy and the environment. Such agreement refers to the charging of electric vehicles, as well as the benefits of using hybrid and electric vehicles pursuant to the Mexican government’s policy to mitigate the effects of greenhouse gas emissions. Mexico is the first Latin American country to regulate the emission of carbon dioxide in new light vehicles. The president of AMIA, Eduardo Solís, emphasized at the signing of the agreement that the hoped for results of the Mexican energy reform will allow new natural gas systems to be used in the process of vehicle painting, which means new technological opportunities. In addition, the Mexican automotive industry will soon have access to ultra-low sulfur fuel, as established five years ago by the Official Mexican Norm 086, which established a commitment from PEMEX, which has thus far remained unfulfilled. Mexico’s Secretary of Energy, Pedro Joaquin Coldwell, acknowledged the importance of the automotive industry to the country and reiterated the federal government’s commitment to support the industry and its continued importance to Mexico’s economy. Coldwell pointed out that the energy reform would favor the automotive industry immediately following the opening of the fuel sales market to the public. As is widely known, by 2017, the exclusive right of PEMEX to provide fuel to companies will be eliminated, which will allow for access to other brands. Once the PEMEX monopoly and right of exclusivity comes to an end, importing fuel will be possible and the doors will open to companies that comply with the applicable regulations for importing fuel. By 2018, the full application of the reform is scheduled, and with it will come the freedom to establish brands, prices and a free market in the fuel supply industry. In regard to the electricity sector, the Energy Secretary pointed out that an open free market would contribute to the range of Mexican energy options by integrating clean energy into the country’s energy portfolio. On the other hand, the promotion and development new technologies such as hybrid and electric vehicles will increase. Without doubt, these are steps that benefit the Mexican automotive industry.


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