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Auto Manufacturing Expands in Mexico

Admin | 14.05.2012

The central region of Mexico has experienced substantial growth in the automotive industry due to a peak in interest from Japanese auto manufacturers, such as Nissan, Mazda and Honda and German auto manufacturers such as Audi and Volkswagen. Cities in the central region are closer in proximity to each other, which makes it advantageous for suppliers to shorten the supply chain to the larger manufacturers.

The central region of Mexico has experienced substantial growth in the automotive industry due to a peak in interest from Japanese auto manufacturers, such as Nissan, Mazda and Honda and German auto manufacturers such as Audi and Volkswagen. Cities in the central region are closer in proximity to each other, which makes it advantageous for suppliers to shorten the supply chain to the larger manufacturers.

Japanese carmaker, Nissan plans to open a facility in Aguascalientes as announced by corporate earlier this year. The plant will open late next year in order to increase sales in the Americas. Mazda’s expansion in Guanajuato is centered around serving Central and South America while Honda chose Guanajuato with the idea that Mexico would provide flexibility and maintain competitiveness in the fluctuating market.

German luxury carmaker, Audi was the latest company to announce expansion into Mexico for its first North American manufacturing location. Audi recognizes Mexico as an opportunity for higher profit margins, price competitiveness, good infrastructure and close proximity to the U.S. Volkswagen, owner of Audi also has plans to establish a facility in Guanajuato.

With over 20 years of experience, North American Production Sharing (NAPS) is an expert in the industry, identifying industry trends and providing administrative support services for companies interested in manufacturing in Mexico. As a result of the influx of larger auto manufacturers and the increased demand for suppliers in the central region, NAPS opened an office in Guanajuato to better serve the industry demands.

NAPS recognizes the opportunities available for automotive suppliers and can help evaluate which area is best to install your manufacturing since Mexico’s border and central region hold its own strengths and advantages. NAPS is able to provide flawless customer service to clients, continuously serving areas of growth and opportunities in Mexico.

Mexico as a whole has become an increasingly attractive location for companies searching for a low-cost manufacturing location to expand or relocate operations. In the wake of recent natural disasters such as the Japanese earthquake and Tsunami, global companies are recognizing the need to diversify their manufacturing platforms to meet just-in-time production goals. Rising fuel costs, production logistics and exchange rates play a role in determining the optimal manufacturing location.

Source: cisionwire.com

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