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Seven German Firms to Invest in Mexico

Karla Salinas | 18.07.2016

ThyssenKrupp, Grünenthal, BMW, Bosch, Daimler, Kromberg & Schubert and Grupo Volkswagen are the seven companies that develop plants or buy businesses in Mexico.

Seven German corporations have agreed to invest nearly $3.8 billion during the period from 2016 to 2020; this amount represents 62% of the total FDI captured from Germany over the last lustrum. 

According to the Mexican-German Chamber of Commerce and Industry (CAMEXA), the income currently generated by German-owned businesses in Mexico (including exports), stands for 8% of the GDP in Mexico, while back in 2010, it stood for just 6%. 

ThyssenKrupp, Grünenthal, BMW, Bosch, Daimler, Kromberg & Schubert and Grupo Volkswagen are the seven companies that develop plants or buy businesses in Mexico with a vision to export to key markets such as the U.S. and the rest of Latin America.

"We are two countries that complement each other by having industrial vision… there are pending subjects but Mexico is Germany's main commercial partner with great potential of growth in the region", said in a recent conference the Ambassador of Germany in Mexico, Viktor Eibling.

The automotive BMW will invest $1 billion between 2016 and 2019 to build an auto assembler in San Luis Potosi, intending to serve the markets of the United States, Europe and Latin America.

On the other hand, Bosch will invest $ 100 million in the next two years, mainly to expand its production of ABS brakes, because Mexican law will oblige automotive companies to have this attachment in cars in order to sell them in the country.

The pharmaceutical Grünenthal invested $34 million in the purchase of Almirall, seeking to grow in the production of medicines for common ailments in Mexico such as diabetes and digestive problems.

While Daimler, in alliance with Japan's Nissan, will invest $ 1,300 million between 2016 and 2018 for the manufacture of luxury models of the brands Infiniti and Mercedes Benz in Aguascalientes. These vehicles will be exported mainly to the United States.

The company dedicated to the manufacture of automotive parts ThyssenKrupp will invest $284 million between 2016 and 2020 with the intention of increasing its manufacturing of axles and other parts for the Assembly of vehicles in Mexico and the United States.

Kromberg & Schubert will invest $65 million in two years for a plant of Automotive parts in Guanajuato.

The Volkswagen Group will invest $ 1 billion this year for the production of their new Tiguan truck in their Puebla headquarters, with the intention of sending these vehicles to the United States and raise its sales in that market, where its image was affected by the diesel engines scandal that failed vehicle emissions test.

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