According to official data, eight Mexican states received most of the Foreign Direct Investment (FDI) for the automotive industry during the first half of the year, including that from automakers and auto suppliers.
Despite the uncertainty created by the renegotiation of NAFTA, foreign investments by automakers totaled the record figure of $3.62 billion during the first half of 2017, according to a report by El Financiero, citing data from the Secretary of Economy.
Around 66% of those investments, representing $2.4 billion, came from the United States. That figure represents an increase of 263% compared to the investment by U.S. automakers during the first half of 2016, which totaled $912 million.
One of the biggest investments was made by FCA at its Toluca Assembly plant to build the new Jeep Compass, says the report, but it does not cite specific figures for that matter. However, data from PROMEXICO backs up that assumption.
The State of Mexico, where the FCA Toluca plant is located, tops the list with $1.66 billion followed by Guanajuato with $1.02 billion. Nuevo Leon received $911 million, Coahuila $685 million and Aguascalientes $654 million.
San Luis Potosi was the destination of $618 million in new investments. The list is completed with Queretaro which received $567 million and far behind is Puebla with $183 million.
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Having spent many years at KPMG as a partner and finally as Head of Corporate Finance, Midlands, Richard Boot currently chairs and holds directorship of various companies associated with staffing and recruitment. He is also a former board member of IRC Global Executive Search Partners.
IRC Global Executive Search Partners convened affiliates and business partners at three regional summits covering Asia Pacific (APAC), Europe, the Middle East and Africa (EMEA) and the Americas in early 2019 to spark an intercontinental discussion about leadership and organizational preparedness in an era characterized by accelerating technological change and disruption.