Chrysler Toluca and Chrysler Ramos Arizpe will reopen
Coahuila, Mexico,- After remaining closed since April 30, when Chrysler's bankruptcy announcement was made, seven complexes in the United States and Mexico will open again next June 29; such complexes include Toluca Plant and facilities in Ramos Arizpe, Coahuila.
The plants that will open as of June 29 are: Sterling in Michigan where Sebring and Avenger are produced; Warren, also in Michigan where Ram and Dakota are assembled; San Luis in Fenton, Ram; Toledo in Ohio, producer of Jeep Wrangler; Brampton, Ontario, Canada, with the production of 300, Challenger and Charger; Windsor, in Ontario, Canada, with Town & Country and Grand Caravan; Toluca, Mexico, with Dodge Journey and PT Cruiser.Source: Vanguardia
VW will receive MEP$18.6 million from government as aid in crisis
Mexico City,- Five months later aid arrived to Mexican automotive sector. Volkswagen de Mexico informed that they will receive today from the Mexican Government a deposit for MEP$18.6 million.
These resources come from the MEP$2 billion financial aid fund announced in the second week of January, as support to companies that due to the economic crisis were forced to resort to technical stoppages.
Volkswagen's Press Office said that this amount will only cover 27% of total cost of the 16-day technical stoppage, which Volkswagen has had up to now in their Puebla Plant.
"The cost of the technical stoppage for VW Mexico was MEP$68.8 million. The money received will go directly to the Company's treasury, because we already paid compensations to workers for each day in technical stoppage", a spokesperson explained.
The Press Office also said they are analyzing the possibility of a new technical stoppage late in July. "We are now negotiating the dates and scheme with the Union, and for the time being we cannot provide any further details", the spokesperson in Puebla declared.Source: El Universal
Aeronautic industry in Mexico promoted
Le Bourget, France.- Mexico wants to attract investment in the aeronautics industry, promoting the benefits of low-cost and competitive labor.
"In times of crisis, Mexico is an opportunity for companies in international aeronautics industry, because all in all it offers costs 30% lower", Fernando Krazovski, ProMexico's National Promotion Executive Director said.
Mexican companies and government officers participate in the 48th Aeronautics and Space International Trade Show, the most important in the sector all over the world.
Martha Lara, Chihuahua Minister of Industrial Development, is working on attracting interest for the State by US and European companies.
Some companies, such as Hydra Technologies de Mexico, attract visitors with one of their unmanned aircraft suspended at the pavilion's entrance. Source: El Norte
Ryder will continue managing auto parts supply for Mazda Mexico
Mexico,- Ryder System announced Mazda North American Operations (MNAO) will extend their agreement until October 2011 for the management of auto parts distribution to their dealerships network in Mexico.
With this new agreement, Ryder will manage parts distribution from Mazda Distribution Center located in Olive Branch, Mississippi to a warehouse in Monterrey, Mexico and from there to all dealerships in Mexico.
On this subject, Jorge Salas, Ryder's Automotive and Trans-border Operations Director, said "Our purpose is simplifying Mazda parts operations and enhance our services to its business partners and to consumers".Source: Zocalo
Fiat cars to be assembled in Toluca
Mexico, Distrito Federal,- Mexico City-Chrysler-Fiat alliance will bring some changes in vehicles produced in Chrysler plants in Mexico, a report from Global Insight informs.
Fiat 500 will be assembled in Chrysler's factory in Toluca as of July 2011, to be sold in the USA, where it will directly compete against BMW's MINI.
Another vehicle which will be assembled in Toluca will be Fiat Panda Crossover, which will now be named Jeep Panda, and which production will also start in July 2011.
Chrysler's complex in Toluca manufactures PT Cruiser and Dodger Journey van, which are exported to more than 60 countries from Mexico. Mexico's strategic location and its wide range of free trade agreements will allow Fiat Mexico export to the USA duty-free vehicles, as a result from their alliance with Chrysler.Source: El Financiero
Nestle invests US$22 million
Guadalajara, Mexico,- Nestle invested US$22 million in the expansion of their Logistics Center located in Lagos de Moreno, Jalisco, creating 103 jobs.
Nestle Logistics Center previously occupied 29 thousand 264 square meters (315 thousand square feet); its surface will now be 79 thousand 707 square meters (858 thousand square feet), with 114 shipping doors.
"The whole production of baby formula in Mexico is done here (in Jalisco), 40% of this production is shipped abroad and this Center, together with Toluca Distribution Center, is the largest Distribution Center we have", Juan Carlos Marroquin Cuesta, Nestle Executive President, pointed-out.
According to the Company, annual economic contribution in Jalisco by Nestle is over US$331 million.
Nestle has presence in 86 countries with 480 factories. In Mexico it has 25 research centers, 14 factories and 16 distribution centers. Throughout Mexico it generates 6 thousand direct jobs. Nestle has more than 8 thousand 400 products all over the world.Source: El Financiero
MEXICO'S WEEKLY HEADLINES
- -- Chihuahua, interesting for suppliers of aerospace industry
- -- Nuevo León loses GM's investment
- -- Sony Ericsson realizes changes in Mexico
- -- Concamin proposes accions to reactivate industry in Mexico
- -- More than 20 thousand employments got lost in Tamaulipas: CROC
EDITORIAL
Saturn, Penske, integration and future industry
Mexico City.- The recent announcement made by the American businessman Roger Penske, showing his interest to become owner of Saturn brand, which General Motors, under bankruptcy, is leaving, makes us think that Mexico must look for other ways to save the automotive platform that has been raised in Mexico throughout 47 years.With General Motors bankruptcy in the United States, a new stage in the development of automobile industry starts there, and therefore also in this sector in Mexico, which has historically depended on the US. This stage is filled with surprises; by getting rid of four divisions (Hummer, Saturn, Pontiac and SAAB) General Motors opens purchase possibilities to several stakeholders. A Chinese company purchasing Hummer, Roger Penske businessman and multi-brand dealer (also linked to racing in the now gone Indy Cart) interested in Saturn; the disappearance of Pontiac, which in Mexico could lead to the creation of a regional brand, using San Luis Potosi plant to such purpose; and the Swedish SAAB which is left to the decision by Sweden's Government.
I will specifically discuss Penske, who will buy, according to the agreement entered, Saturn Division, a complex producer of low-cost units. Penske's plans are to use South Korea's Renault-Samsung technology for the massive manufacture of cars to be sold in a market which is switching from large to small and medium cars. A large piece of the new Clockwork Orange in American Industry.Why is a businessman, such as Roger Penske, able and willing to purchase an automobiles manufacturing plant? Could that happen in Mexico? The economic crisis, but most of all the financial scandal filled with corruption in speculative actions carried out by a few, exploded with General Motors implosion. This phenomenon is generating "new" paradigms in the US liberal economic model.
The State "partially" nationalizes General Motors. Workers, as in the best Chinese-Communist system, become stockholders. The private sector has the opportunity to start again a process to integrate a new structure of automotive companies' owners. Penske, previously a big automobiles dealer, becomes now an assembler. An opportunity emerges. It is taken. What is GM's future going to be in Mexico? Whatever it is, it opens the opportunity to Mexican businessmen so they can take advantage of a new synergy in the regional automotive business. Of course, we are speaking about what should be done here, about the opportunity of buying industrial plants, not only GM's but also Chrysler's which future is uncertain before FIAT which does not have a lot to promise. It has to be said with as many words as required. If Mexican businessmen take advantage of Chrysler plants in Toluca and Ramos Arizpe, this will be the start of a new stage in the life of automotive industry in Mexico.Instead of thinking of Chinese projects in Mexico, potential to make new business by using existing plants is extraordinary. It is only a matter of waiting and seeing the new arrangement of companies. What will finally be of GM in Mexico, what will be of Chrysler, of FIAT which does not have a plant in Mexico.
But we must also be on the alert to take advantage of opportunities at the right time. Unfortunately, in Mexico we cannot count on the official sector. The Government, and specifically the Ministry of the Economy, does not weigh, is unable to see the potential ahead to grow. Young rulers, educated in Harvard with a neoliberal vision, do not have the capacity to adapt to these new times and new ways to do things, which also establish a new automotive production scheme all over the world.This scheme brings new stakeholders. If GM filed for bankruptcy to later get smaller, this means that other stakeholders may join the fight to own the new assembly platform, with new brands or bringing existing brands back to life, as Penske is doing.
The government must abandon its old and dusty neo-liberalism paradigms so that it may turn its eyes to that direction. It is no secret that governments of crisis and unscrupulous financial speculation head towards protectionism for their economies and industrial projects, even if they remain in a "globalization" orbit. It would be interesting to find a new definition for this term.Therefore, this rearrangement in the way to see "new" economy tells us that we must turn our eyes to what has been taught by history. It is important to protect local economies, jobs and the domestic productive plant; and therefore, look for the country's interest demanding once again a minimum of Mexican contents in each product manufactured.
These are the paradigms of the sixties and the seventies; but they provided the basis of the then commencing Mexican auto parts industry in 1962, with the first Decree on the Automotive Industry which provided for the sector's integration. An extraordinary text written by Mr. Claudio Mayoral Glasio, "Mexican Automotive Industry, The Decree of August 23, 1962" is now current once again.Just as historical data to illustrate the importance the sector had in 1960, almost half a century ago; Mexican companies then existing:
- Fabricas Automex (imported and then produced here Chrysler, Plymouth and Dodge vehicles).
- Ford Motor Company (there was a time when they assembled in Mexico nine different vehicles).
- General Motors de Mexico.
- International Harvester de Mexico (diesel engine trucks).
- Nissan Mexicana (importer and later producer).
- Vehiculos Automotores Mexicanos, VAM (produced in Mexico Rambler cars).
- Volkswagen de México (importer and later producer).
- Diesel Nacional (the state-owned company manufacturer of Renault automobiles and other truck and buses brands).
- The most important in Mexico.
- Trailers de Monterrey (trucks and buses).
- Autocar Mexicana (trucks and buses).
- Kenworth Mexicana (trucks).
- Trailers del Norte (trucks).
- Victor Patron.
- Mexicana de Autobuses.
Someone please open the minds of those youngsters, spoiled when they reach government positions, looking only for their own profit, causing industry, employment and the whole country to drift away.
By: César Roy, from AlVolante.info.com (cesaroy@cablevision.net.mx)
