The 7% extra cost from producing a car component in China, makes Mexico an attractive destination for investment.
Mexico is now ranked among the top three most competitive countries worldwide regarding costs to manufacture auto parts, above competitors such as the U.S., China and Brazil, affirmed Oscar Albin, President of Mexico's National Auto parts Industry (INA).
Auto parts and automotive components firms have a 7% extra cost from producing a car component in China, in contrast to the cost of manufacture in Mexico, and producing it in the U.S. is 10% more expensive, hence making Mexico an attractive destination for investment.
On the other hand, Alberto de Icaza, Director of ZF TRW, a manufacturer of safety belts, air bags, among others, said that "Mexico just became an auto part hub for the U.S. It is not profitable to assemble a small vehicle there (in the U.S.), that is why Ford decided to move its production to Mexico".
You might also be interested in:
Expert panellists at IRC Global Executive Search Partners Global Conference “Innovation & Agility: The New World” in Shanghai tell us how Chinese companies square a top-down or bottom-up approaches with innovation in the workplace.
IRC Global Executive Search Partners Global Conference in Shanghai saw an expert panel weigh in on issues pertaining to “Innovation & Agility: The New World”.