Mexico is rapidly becoming a more important strategic partner for automakers who want a competitive edge to succeed in the North American auto industry.

      In 2001, Mexico was the ninth largest producer of automotive vehicles in the world, manufacturing 1.92 million units (including trucks and buses). In 2004, production decreased to 1.5 million vehicles due to an economic slowdown. However, it grew to 1.6 million vehicles in 2005 and is expected to grow to over 2.1 million vehicles in 2006.

      As a result of new investments in their assembly lines and the launching of innovative vehicle platforms, Ford, Volkswagen, and Nissan significantly increased their production.

      This activity provides an extraordinary opportunity for additional growth for U.S. first and second tier suppliers, especially for providers of raw materials, technological advancement, parts, machinery, and consumable supplies. Automotive assembly plants now require their basic suppliers to be within a 30-minute drive to the manufacturing facility in an effort to reduce inventory costs, increase supply controls, and successfully implement JIT practices.

      The Monterrey, Saltillo, Aguascalientes, and Silao metropolitan regions have become major automotive parts manufacturing hubs. Component manufacturers located in the area supply major automotive assembly plants nationwide.

            Greater Monterrey, home to 4 million people, is considered Mexico’s industrial powerhouse. More than 100 auto parts manufacturers are active in the region. Additionally, there are hundreds of other types of suppliers providing assembly processes for component...

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