The "Automotive Industry Discussion" Thread
10-22-2013, 12:12 PM
#1
I drive a Subata.
Thread Starter
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The "Automotive Industry Discussion" Thread
Thought it would be nice to have a thread like this for everyone to discuss about what's going on in the automotive industry.
I always have all these different types of questions regarding the industry and thought it would be cool to have one in AZine since it's the best forum for everything.
PM-ed a moderator about the location of this type of thread and was directed here.
Everyone is welcome to post articles/questions/answers here obviously.
My first question was that why exactly is Mexico becoming the China of the West for automotive industry?
Related Article: http://www.al.com/business/index.ssf...0_billion.html
I always have all these different types of questions regarding the industry and thought it would be cool to have one in AZine since it's the best forum for everything.
PM-ed a moderator about the location of this type of thread and was directed here.
Everyone is welcome to post articles/questions/answers here obviously.
My first question was that why exactly is Mexico becoming the China of the West for automotive industry?
Related Article: http://www.al.com/business/index.ssf...0_billion.html
Mexico's star continues to rise in North American auto production.
The country is set to see $10 billion in new factory investment, according to a Reuters report.
Japanese and German automakers, which both drive Alabama's auto industry, are leading the trend in Mexico.
BMW, Toyota and Mercedes-Benz are expected to announce at least $2 billion in new investments over the next few years. That follows nearly $6 billion in new projects by Nissan, Honda, Mazda and Volkswagen.
U.S. automakers, along with Nissan and Volkswagen, also are looking at expansions and upgrades, worth a combined $2 billion, to existing facilities in the country.
Mexico "is quickly turning into the China of the West," Joseph Langley, a senior analyst at Michigan-based research firm IHS Automotive, told Reuters.
Read the full report.
Mexico's growing global profile in the industry has not gone unnoticed in Alabama, home to auto assembly plant for Mercedes, Honda and Hyundai.
The automakers also continue to expand their operations in this state, with Mercedes set to add hundreds of new jobs and new models in the coming years.
The country is set to see $10 billion in new factory investment, according to a Reuters report.
Japanese and German automakers, which both drive Alabama's auto industry, are leading the trend in Mexico.
BMW, Toyota and Mercedes-Benz are expected to announce at least $2 billion in new investments over the next few years. That follows nearly $6 billion in new projects by Nissan, Honda, Mazda and Volkswagen.
U.S. automakers, along with Nissan and Volkswagen, also are looking at expansions and upgrades, worth a combined $2 billion, to existing facilities in the country.
Mexico "is quickly turning into the China of the West," Joseph Langley, a senior analyst at Michigan-based research firm IHS Automotive, told Reuters.
Read the full report.
Mexico's growing global profile in the industry has not gone unnoticed in Alabama, home to auto assembly plant for Mercedes, Honda and Hyundai.
The automakers also continue to expand their operations in this state, with Mercedes set to add hundreds of new jobs and new models in the coming years.
10-22-2013, 12:49 PM
#2
Senior Moderator
Because as China moves up the world economic ladder, their negotiating firepower gets stronger. Also, it's surely a shit-ton cheaper to truck/train cars from Mexico than ship them from China.
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Aman (10-22-2013)
10-22-2013, 12:57 PM
#3
I drive a Subata.
Thread Starter
iTrader: (1)
Ah, makes sense.
Wonder how "Union" works in Mexico with these American car companies.
Wonder how "Union" works in Mexico with these American car companies.
10-22-2013, 01:00 PM
#4
Senior Moderator
The same way they work in "Right-to-work" states. They don't.
EDIT: I suppose I misunderstood the question in your OP. I was thinking that cars are moving from China to Mexico which isn't the case. My guess is that as the USD dollar suffers on the world stage, it is less affordable to build cars in Japan and Germany (possibly even Canada), and the Peso may have strong ties to the USD resulting in the same diminished value. With less labor laws and close proximity, Mexico becomes a cheap place to build cars.
Like I said, just a guess.
EDIT: I suppose I misunderstood the question in your OP. I was thinking that cars are moving from China to Mexico which isn't the case. My guess is that as the USD dollar suffers on the world stage, it is less affordable to build cars in Japan and Germany (possibly even Canada), and the Peso may have strong ties to the USD resulting in the same diminished value. With less labor laws and close proximity, Mexico becomes a cheap place to build cars.
Like I said, just a guess.
Last edited by oo7spy; 10-22-2013 at 01:06 PM.
10-22-2013, 02:06 PM
#5
Your Friendly Canadian
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My high-school economics teacher said that Canadian automotive manufacturing is popular because the cost of electricity here is much cheaper. Never looked that up further.
VW's been in Mexico for 50 years. I always thought it was just because of cheap labour and cheap shipping.
Never looked that up further.VW's been in Mexico for 50 years. I always thought it was just because of cheap labour and cheap shipping.
10-24-2013, 01:33 AM
#7
Suzuka Master
I believe because theres no import/export tax across north america? I'm not 100% sure though and I'm too lazy to look this up and confirm.
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10-24-2013, 03:11 AM
#8
Your Friendly Canadian
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10-24-2013, 10:40 AM
#9
Just because you^ are dark it doesn't make you Latino. I would suggest asking your mom about who your Dad was again.
10-24-2013, 10:41 AM
#10
In the Mid-South meow
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My co-worker didn't believe me when I told him my Charger was built in Canada haha.
10-24-2013, 11:18 AM
#11
Senior Moderator
10-24-2013, 11:38 AM
#12
I drive a Subata.
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10-24-2013, 08:57 PM
#14
Your Friendly Canadian
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I was talking about where our cars were manufactured, genius.
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