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
General Motors Produces its 5 Millionth Transmission in Coahuila E-mail

General Motors Produces its 5 Millionth Transmission in Coahuila

The General Motors transmission factory in Ramos Arizpe, Coahuila produced its five millionth transmission at the complex such global automaker has operated since 1999. General Motors issued a press release announcing the milestone event. The complex’s director stated that it was an honor for the plant’s workers to complete their 15th year of manufacturing activity, which has resulted in the manufacture of the highest possible quality and technology for transmissions. Transmissions manufactured in Coahuila are exported to final assembly manufacturing facilities in the United States, Canada, China and Europe. The transmissions are installed in models such as the Chevrolet Malibú LTZ, Chevrolet Equinox LTZ and the Cadillac SRX. The latter model is assembled in the same city of Ramos Arizpe. The plant is located on a 29.65 acre site and employs more than 600 employees on two production lines which assemble both “hybrid” and six speed transversal transmission units.

Automotive Vehicle Emissions Testing in Mexico’s Border Zone E-mail

Automotive Vehicle Emissions Testing in Mexico’s Border Zone

Members of Mexico’s Lower House of Congress will present an initiative to amend the Federal Law of Highways and Bridges to provide for the installation of vehicle emission verification centers in the northern border zone of Mexico in order to put the brakes on the importation of “junk” (“chatarra”) vehicles whose mechanical conditions do not comply with applicable Mexican environmental standards. The initiative seeks to prevent such junk autos from transiting on Mexican federal highways. Mr. Salvador Romero Valencia, President of the Special Committee on the Automotive and Steel Industries in the Mexican Congress stated, “What we want to create with this initiative is a program to discard junk vehicles and foster the modernization of the country’s vehicular fleet and domestic market”. The President of Mexico’s Automotive Industry Association, Mr. Eduardo Solis, stated, “The intention is to stop the entry of imported vehicles from the United States which seriously limits the domestic market”. He also stated that controlling this flow of imports could cause the Mexican domestic automotive industry to increase its production by two million vehicles and could generate 3,000 additional jobs throughout the country.

Preferences of Mexican Automotive Purchasers E-mail

Preferences of Mexican Automotive Purchasers

A recent study on Mexican consumer satisfaction with their vehicles offers interesting data regarding the automotive preferences of Mexican drivers. JD Power Mexico consulted a wide range of Mexican motorists (5,850) who purchased new vehicles between October 2011 and September 2013. The purpose of such study was to learn more of the preferences and tendencies of Mexican consumers in the domestic automotive market. The studies showed that, on balance, women were more satisfied with their vehicles than men.

Top Reasons to Purchase New Autos in Mexico

Results from the poll of automotive purchasers showed that buyers named the following factors as their top consideration:

Fuel efficiency (19%); exterior design (15%); interior comfort (8%); performance (7%); reliability and durability (7%); image projected by the automobile (7%); purchase price (6%); manufacturing quality (5%); safety (4%); and low cost of maintenance (4%)

Makes and Models

In regard to the poll’s question on consumers’ preferences of makes and models, the following results were reported:

For small subcompacts, the Nissan Tsuru and for small SUV, the Nissan Juke. In the premium subcompact category, the Honda Fit, while in the medium-sized SUV the Mazda CX-9. The Toyota Corolla was named the top compact model, while the BMW X3 was the preferred Premium SUV. Toyota Camry was the number one preference in the mid-size category, and the same automaker’s Tacoma pick-up was the top small pick-up. The Mini Countryman model was the top pick for small Premium model, while the Chevrolet Silverado won the large pick-up category and the Mercedes Benz Clase E was the preferred medium Premium model. In regard to the automakers overall, Mexicans expressed their preference for BMW in first place, followed by Audi, Mercedes-Benz, Mini, Mitsubishi, Toyota, Honda, Jeep, Mazda, Ford, Nissan, Volkswagen and Renault

Client Loyalty Index

Volkswagen topped this category with a 59% rating, followed in order by Nissan, Ford, Chevrolet, Honda, Ram, Mercedes-Benz, Audi. Chrysler, Acura, Dodge, Toyota, Jeep, Mazda, Seat, Renault, Peugeot, Mitsubishi, Fiat, Mini and Suzuki.

Satisfaction with Automotive Maintenance

The automaker with the top rating was Mercedes-Benz at 71%, followed by Mitsubishi, Toyota, Audi, Nissan, Honda, Mazda, Acura, Jeep, Renault, Chrysler, Mini, Ford, Chevrolet, Peugeot, Suzuki, Volkswagen, Ram, Dodge, Seat and Fiat.

Porsche in Mexico: A Long Tradition E-mail

Porsche in Mexico: A Long Tradition

The iconic German automaker Porsche became known globally and throughout Mexico at the beginning of the 1950’s as part of the Carrera Panamericana (Pan Am Race). In fact, the popular “Carrera” model derives from the success it had and the fame it achieved as being almost unbeatable. Francisco Torres, Porsche’s Director in Mexico, recently gave an interview confirming that 2014 was an excellent year for the company. Sales increased 21.2% over the first ten months of the year, which is much higher than the 5.6% increase over the same period in the sector generally, and the 2.05% fall in sales suffered by the luxury auto segment in particular. He noted that 2015 will be crucial for the company’s launch of the “Macan” model, which will go on sale in Mexico at the beginning of 2015. It is hoped that the Macan, Porsche’s first four-cylinder model in the modern era, will prove to be a good commercial bet and will generate substantial profits from sales of this youthful and stylish model.

Light Vehicle Production in Latin America (2014) E-mail

Light Vehicle Production in Latin America (2014)

Brazil: 3,011,288 vehicles;

México: 2,773,804 vehicles, and

Argentina: 557,348 vehicles.

While Brazil has maintained its position at the top of Latin American light vehicle manufacturers, Mexico has increased its production 8.7% over the prior year. During the same time Brazil’s production fell 15% and Argentina’s fell 22.7%

Mexico Plays Important Role in U.S. Light Vehicle Market. E-mail

Mexico Plays Important Role in U.S. Light Vehicle Market.

The year 2014 has seen the sale of 15 million light vehicles in the U.S. Of these, 1,736,264 were imported from Mexico. Such total represents 11.6% of all vehicles sold. Among countries exporting vehicles to the U.S., including Germany, Japan and South Korea, Mexico has shown the highest increase, raising exports by 13.3%, while exports from Japan fell 1.4%.


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