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Automotive sector is the ‘new petroleum’

Admin | 26.03.2013

The automotive sector has become “the new petroleum” for Mexico, due to the development and growth posted in the last few years and expected for coming years, Marco Oviedo, Chief Economist with Barclays in Mexico, assured.

The automotive sector has become “the new petroleum” for Mexico, due to the development and growth posted in the last few years and expected for coming years, Marco Oviedo, Chief Economist with Barclays in Mexico, assured.

During an encounter organized by Bloomberg, Mr. Oviedo pointed out that this sector has become an essential piece for Mexican economy, considering recent investment levels.

“Manufacturing in Mexico has made great progress, as has done specialization, and an example of it is automotive industry”, he pointed-out.

He further said that Mexico has competitive advantages, such as being neighbors of the United States, which before high oil prices presents an opportunity by cutting down costs.

In this sense, he said that the Energy Reform will help companies cut down costs, in addition to increasing the country’s competitiveness.

Juan Manuel Gonzalez Lelo de Larrea, Head of Sales and Business Development for Latin America with Bombardier, spoke about the importance of working on this issue. He said that energy costs must be kept at competitive prices, because otherwise leverage would be lost in this area.

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