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".
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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.