Bulletin 399 - Friday, December 12, 2008

In spite of the problems automotive sector is facing in the USA, Ford Motor Company will keep plans to invest US$838 million in Chihuahua Engines Plant, Alejandro Cano Ricaud, Minister of Industrial Development, informed and further said US$400 million have already been invested and the rest will be invested in 2009. He reminded that Ford announced last May a US$3 billion investment in Mexico and to date, in spite of the problems assemblers have in the United States, there has been no sign investment of these resources will be cancelled. Automotive industry is currently facing a very difficult, yet contrasting, situation in the world. As is widely known, the three largest automobiles manufacturers in the United States, General Motors, Ford and Chrysler recently asked for economic aid from the US Government for US$34 billion. Ford is expecting to go back to economic balance and obtain a profit in North America by 2011, to which purpose they took some steps, such as the sale of Aston Martin, Land Rover and Jaguar subsidiaries, reducing its tenancy in Mazda and analyzing strategic options for Volvo.

Source: El Diario

Monterrey, Mexico, - Economic crisis has several sectors on the rack, but children still play. Therefore, there are companies in toys industry that are forecasting a 10% to 15% growth over 2007 Christmas season. Toys industry is subject to a very specific cycle, most of their concentrate in November and December, amounting to between 50% and 70% of total sales for the year. Therefore, even if many industries are cutting down personnel, specialized companies such as Julio Cepeda are growing in these times of crisis. Julio Cepeda Toy Stores have already hired 150 temporary workers, because they are unable to serve all the people coming to their stores, Julio Cesar Cepeda Viramontes, CEO, assured. In addition, this year they opened five new stores, three in Monterrey, one in the State of Mexico and another one in Tamaulipas. Also Juguetes Mi Alegria, leader in manufacturing Mexican scientific games forecasted they will close the year with a 15% increase in sales over 2007, Jeronimo Rangel, the Company's Marketing Manager informed.

Source: El Norte

Puebla, Pue- Volkswagen de Mexico reported that upon closing November they reached an accrued production of 427 thousand 119 automobiles, which means a 12.8% increase when compared to even term last year and a new record for the assembly plant, by exceeding the 425 thousand units manufactured in 2000. From January to November 2008 Volkswagen has produced 359 thousand 102 vehicles for export, which represents a 17.1% recovery when compared to even term last year. As far as production by models is concerned, the car most widely manufactured by Volkswagen in their Puebla Plant is Bora, with 194 thousand 310 units, followed by SportWagen with 106 thousand 330 units, Jetta with 73 thousand 603 and Beetle in its two versions with 52 thousand 876 units. In addition to figures above, from January to November 2003, 1 thousand 619 trucks and bus chassis were assembled.

Source: VW

Mexico,- With an investment over MEP$350 million, Jafra Manufacturing, from Vorwek Group, will be built in Queretaro Industrial Park to generate 600 direct jobs. State Governor, Francisco Garrido Patron, and City Mayor, Manuel Gonzalez Valle, set the cornerstone for this plant, property of the German Group which has presence in more than 61 countries and more than 500 thousand independent dealers. Garrido Patron assured that this investment was possible thanks to the efforts made by the State Government to attract productive investment as true progress, because it generates the jobs required. He further said that the state is attractive because safety is an important factor for businessmen, who require social peace to develop their projects.

Source: El Financiero

Monterrey, Mexico- The Japanese Company Kayaku Safety System, subsidiary of Nippon Kayaku Group. inaugurated a production plant in Salinas Victoria Municipality, where they invested US$23 million. When it starts-up, scheduled for April 2009, the plant will generate 100 direct jobs. Itaru Hori, General Director in Mexico, informed that in the first stage they will produce gas micro-generators, which are devices that go in cars front seat safety belts. After the global crisis is over and markets stabilize, they will add other product lines. "We have started our activity in this regrettable financial crisis, which mainly affects the automotive industry, to which we belong; however, we will be prepared so that when the economy recovers we already have a technical production basis", he pointed-out.

Source: El Norte

Monterrey, Mexico,- Mexico will start producing rum being currently produced by Bacardi Plant in Nassau Bahamas, which will close next March. The Company informed that this decision will double Bacardi's annual production in Mexico, which will go from 3 to 6 million boxes upon closing 2009. Bacardi has three plants in Mexico, located in Puebla, Guadalajara and the State of Mexico. According to the Company's reports, a little over 50% of Bacardi Rum sold in 150 countries all over the world is currently being produced in Mexico.

Source: El Norte