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Bulletin 791 - Friday, January 27, 2017


New Ford plant to start operations in Chihuahua this November

The new facilities of the Ford plant in Chihuahua, to manufacture gasoline engines, will start operating this upcoming month of November. Exerting a US$1.1 billion investment which had been announced in 2015, the Company is going to become the largest engine manufacturer in all of Mexico, thus generating 1,200 new jobs at this new plant. Marcos Madrid, Operations Manager of the Ford plant in Chihuahua, affirmed that the building will be ready during the first trimester of 2017 and the equipment will be set by the third trimester. The Chihuahua plant currently manufactures 295,316 units of the 1-4 engine, and 179,900 diesel engines. Moreover, the total production is estimated to surpass the half million unit mark per year.

Source: Forbes

Kia starts production of the new Rio in Mexico

Kia Motors started the production of the new Rio model HB 2018, at its plant in Pesqueria, Nuevo Leon. Horacio Chavez, Managing Director of the Company in Mexico, affirmed that this is the best-selling model of the firm. The company closed 2016 with a production of 107,500 vehicles in Mexico and 58,112 units were sold nationally, while over 93,000 were exported. The company announced, in August last year, its plan to produce nearly 150,000 units of the new Kia Rio by 2017, with North America and South America as its primary destinations. Kia will be looking to commercialize nearly 100,000 vehicles in 2020, reaching a 5% market participation rate.

Source: Forbes

VW Tiguan will have the "Made in Mexico" seal

From this year forward, Volkswagen is integrating into its "Made in Mexico" portfolio a new model. It is the Tiguan SUV, which had its production line installed at the plant owned by VW in Puebla for the last 50 years. With this platform, VW contributed to the automotive sector investment with a total amount of US$1 billion. This model adds up to the Golf, New Jetta and Beetle manufacturing operations, prompting 1,900 new hirings. The Tiguan line will have a production capacity of 500 units daily, which will be destined mainly to the national market and the American continent. This is a major capital investment for Puebla, as a large portion of the State's GDP is based on the automotive industry.

Source: Plano Informativo

Bill Forge Global inaugurates plant in Guanajuato

Indian Company Bill Forge Global started operations in Celaya, Guanajuato, at the Cuadritos Industrial Park, informed Guillermo Romero Pacheco, head of the Ministry of Sustainable Economic Development (SDES). There was an initial investment of US$12 million, with expectations to escalate to US$30 million and generating over 75,000 jobs. Bill Forge Global is dedicated to the production of hot forged components and machining for the automotive-auto parts sector, targeting the U.S., Asia AND Europe export markets. General Motors, GKN Driveline, Ford, Honda, Bosch, Wabco, NSK, Mahindra, among others, are some of its main customers.

Source: Automotores.mx

Two U.S. firms arriving into Nuevo Leon

Another two companies from the U.S. are betting on Nuevo Leon. It is the popcorn packaging company Act II, who is now building a plant in Santa Catarina, and another company in the business of reels and profiles that recently inaugurated a plant in Apodaca. Act II is building a 6,000 square meters industrial building, inside the Industrial Park Las Torres, which will start operating by mid-year. Regarding the firm located in Apodaca, a broker revealed that US$15 million were invested, to furnish a 7,500 square meter area. Samuel Peña, Sub secretary of the Ministry of Economy and Labor, commented that many companies have preferred to be cautious with their investment announcements in Mexico, but Mr. Peña affirms, rest assured, that investment from the U.S. and other countries as well, will keep coming into Mexico.

Source: El Norte

Jalisco now has an Automotive Cluster

The State of Jalisco has now officially an Automotive Cluster, which is the seventh in Mexico; it has enrolled 24 companies from the sector, mostly providers of large transnational firms, both Mexican and foreign. During the protocol event, there was an inform stating that the automotive sector in Jalisco was, until last November, the second major exporter, with sales of over US$7.8 billion, with an 18% participation from the total international sales in the State and a 10.4% growth rate from January to November 2016, compared to 2015. The new Jalisco Automotive Cluster will have a Jose Herran Galaviz, from the firm Integrated Micro-Electronics Mexico, as its honorary President.

Source: Axopolis

9 automotive assemblers staying in State of Mexico

Adrian Fuentes Villalobos, Secretary of Economic Development of the State of Mexico, assures that the 9 automotive assembly plants established in the State, remain unchanged and none of them is leaving. Ariel Rodriguez Polo, President of the National Chamber of the Transformation Industry (CANACINTRA), in the State of Mexico, mentions that out of all exports, 82% is shipped out to the U.S., which is proof of our quality labor force. Nonetheless, he recognizes that the industrial sector, both in the State and nationally, must be cautious regarding investment projects, while looking to strengthen the national supply chain, as well as domestic consumption; and it must grant national companies the same incentives as given to foreign businesses.

Source: El Sol de Mxico

Local contents in industry must be increased

In the face of the national economic panorama, the Mexican industry is in favor of supporting a program for supplier development, while increasing national contents, with tax exemptions to those companies that invest, aiming to strengthen the internal market. Manuel Herrera Vega, President of the Confederation of Industrial Chambers (CONCAMIN), pronounced an exhort to work on this project, going from the support of export firms, as well as key sectors such as energy, telecommunications and metal-mechanic, including strategic infrastructure works, such as the airport. Mr. Herrera Vega also asked the federal government to establish undertakings to rise government purchases to 32% to favor SMEs, hence creating more industrial jobs; In addition of awarding tax exemptions to all and any investment on the formal sector of the economy.

Source: El Economista

Huang Yu Group lays first stone of Jalisco factory

Taiwanese company Huang Yu Group, provider of pieces for automotive products, will have a manufacturing plant at the Industrial Park Colinas de Lagos, in Lagos de Moreno, Jalisco. The Company's General Director, Chen Jui I and State authorities laid the first stone for the upcoming building of the Huang Yu Precision Technology plant in Mexico. The US$7 million investment, will generate work sources and it will be the first Chinese origin Company to become installed in this Industrial Park. Chen Jui I spoke about the interest of this Company to bring more projects into Mexico over the next five years, after stating that there is market potential for their products in this territory.

Source: Automotores.mx

Auto part supplier expanding operations in Puebla

Automotive supply Company HBPO has announced the opening of its new headquarters in San Jose Chiapa, Puebla, to support assembly operations of the Audi Q5 luxury SUV, and generating nearly 120 jobs in town. The current HBPO plant produces front-end modules and central decks. Anja Sprenger, President of HBPO North America, said that "Audi expects its providers to deliver always high-standard, quality products and that is just what HBPO is planning to do from its new facilities in San Jose Chiapa". Bentley, BMW, Chrysler, Dodge, Fiat, Hyundai, Jeep, Kia and Mercedes are some of its clients, among others.

Source: El Sol de Mxico

Audi to manufacture luxury bullet-proof cars in Puebla

Audi Mexico disclosed that the plant in San Jose Chiapa, Puebla, will start producing bullet-proof compact model SUV Q5 vehicles, the first model this brand is going to manufacture outside of Europe. Walter Hanek, Director of Audi Mexico, says that due to the insecurity affecting the region, Latin America is a market with a large demand for bullet proof cars; however, the brand had a hiatus in their offer of OEM bullet-proof vehicles since 2008, after the production of the 2009 model A6 with this feature was suspended in Germany.

Source: Vanguardia

Infiniti reaffirms trust in Mexico with expansion

The automotive brand Infiniti Mexico reaffirmed its trust in this Country with new investment projects for distribution centers and the arrival of new models. The new distribution centers will be located in Cancun, Toluca and Mexico City, informed the General Director of the brand for Mexico and Latin America, Philipp Heldt. He underscored that 2016 was an unprecedented year for the brand in terms of renovation or model launching. He exposed that the acceptance Infiniti has found in Mexico has moved the company to integrate new bases to continue its expansion plan. In addition to expanding its portfolio and getting prepared for the arrival of the Q60 coupe 400 Sport, Infiniti's network of distributors continues to grow.

Source: Cluster Industrial

India offers alliance to Mexico

India is looking to become Mexico's ally in the textile and apparel sector. Muktesh Pardeshi, India's ambassador in Mexico, explains that, regardless of the Government change in the U.S., they want to increase their relation with Mexico. Anil Rajvanshi, from the Council to Promote Synthetic Textiles and Rayon in India (which groups 5,300 companies together), comments that there is great potential in the possibility of having an association between Indian and Mexican companies, because Mexican products have tax-free access into the U.S., while textile products from India pay taxes ranging from 16% to 29%.

Source: Portum

It is urgent to plan the creation of a Mexican automotive company

After the cancellation of the Ford plant in San Luis Potosi, Salvador Esqueda, President of the Center for Entrepreneurial Innovation in Aguascalientes (Ceinnova), comments that both entrepreneurs and Mexican investors must come up with a plan to create a proprietary assembler to start manufacturing cars with Mexican design and production. Esqueda underscored that it would be healthy for the national economy not to depend anymore on foreign investment. However, the Government must give the same facilities to those executives that manage large capital amounts, as it offers to foreigners, to start building a national automotive industry.

Source: Cluster Industrial

Michelin maintains Mexico projects

Tire producer Michelin ensured the continuity of its projects in Mexico, despite pressures to have manufacturers withdraw from Mexican territory. Jean-Dominique Senard, President of the Company, commented at the Detroit Auto Show: "We are going to be where our clients are, our business is global and we are not reconsidering our presence in Mexico". The firm announced back in July 2016, its plans to build a plant focused on high-finish tires, with an estimated investment of US$475 million. The Company expects the unit, located in Guanajuato, to be ready in 2018 and have a production of up to 5 million tires.

Source: Manufactura