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:
What’s going to put you ahead of the other 1 billion talented people out there? We’d all like to believe that a combination of talent and hard work will lead to career success. This is partly true. Talent and hard work may lead to some success – if you measure success according to a good job at a solid company.
Our experience and depth in the Agribusiness and Agriscience industry sector has been expanded by five new consultants and a new Global Practice Leader.