Bulletin 433 - Friday, August 14, 2009

Mexico City,- Exxon Mobile, lubricants manufacturer, is forecasting a good year in Mexico, with an estimated growth in sales between 10% and 15% with new products to be launched. Their immediate investment plan in Mexico is estimated in US$2.5 million in the modernization of their plant. Vicent Lledo, President and CEO, said they currently have a 22% share of lubricants for automobiles market in Mexico, which they are expecting to increase by two digits by year end with new products offered. "We are well aware of the economic slump in automotive industry, but we are positive it will recover", and further said that in the first half of this year they kept the same sales volume as last year's, but he would not disclose figures. Mr. Lledo said that the US$2.5 million investment will be spent in more efficient processes in their lubricants plant located in central Mexico and not in increasing production.

Source: T21

San Luis Potosi, -General Motors de Mexico inaugurated their plant where 6-gear transmissions will be manufactured for several models; the plant was built in San Luis Potosi with an investment calculated in US$300 million. This Unit - which will employ 600 workers, to join the 12 thousand 300 the Company currently has in Mexico - will produce 300 thousand transmissions every year and will be part of GM facilities here - one of four they currently have in Mexico - where Aveo and Pontiac G3 are manufactured. "These new facilities are part of General Motors expansion plan in Mexico, which considers investments for US$ 1.2 billion in 2009-2011 term", ProMexico said in a press release. GM de Mexico manufactured 508 thousand 748 vehicles last year, of which 70.1% or 387 thousand 152 were exported, mainly to the USA, Canada, Argentina, Chile, Ecuador, Central America and the Caribbean.

Source: Vanguardia

Mexico City,- July was the best month this year for auto transportation units assembly industry; however, figures stay lower than even term last year, as well as in annual accrued figures. The monthly report by Mexican Association of Buses and Trucks Manufacturers, Asociacion Nacional de Productores de Autobuses, Camiones y Tractocamiones (ANPACT) shows that total assembly of this type of units last July amounted to 5,129 vehicles. This figure is the highest for one sole month this year and the first over 5 thousand units; however, when compared to the same term last year, when production was 7,478 heavy vehicles, the result is a 31.4% drop. As far as accrued number of vehicles manufactured, it amounted to 26,466 heavy vehicles assembled in Mexico, compared to 48,827 in January-July 2008, therefore the drop was 45.8%. The Association also informed that as far as sales is concerned, demand in July was for 1,897 units, like production, the best number in 2009. Sales in Mexico in the first seven months of the year, ANPACT informed, reached 11,003 units, compared to 32,779 from January to July 2008; practically one third or a 66.4% drop.

Source: ANPACT

Mexico City, - Last July, 14 thousand 260 new jobs were registered all over Mexico in the Mexican Social Security Institute, Instituto Mexicano del Seguro Social (IMSS), although this figure is lower than the 19 thousand jobs created in June; therefore in the last two months the number of jobs generated reaches 33 thousand 503. July was the second month in a row when formal jobs were generated; however, in the last 12 months 593 thousand 855 jobs have been lost, according to statistics from the Ministry of Labor. "Drop in employment is starting to show signs it is stopping", Luis Flores, IXE Analyst said. However, in July 6,630 permanent jobs were lost, while 20,590 temporary jobs were generated. Advance in monthly employment led to an increase in seven out of nine activities into which IMSS classifies registered workers (cattle and agriculture, extraction activities, construction, power, trade, transportation and communications and services to companies and persons).

Source: El Diario

Tijuana Baja California,- As part of growth and development plans, Sinil de Mexico, a subsidiary of the South Korea-based company, started operating a new Distribution Center located in Valle Bonito Industrial Park, as response to product demand and growth plans. In an interview Il Kim, Sinil President, Victoria Lee, Purchasing Manager and Jose Luis De Gante, Managing Director, informed that the estate purchased by the company is 23 thousand 250 square feet, corresponding to a module of "Pradera" building. The purpose is offering better response times, as well as achieving growth goals. They are therefore currently working in several projects, such as the consolidation of 6 delivery units, progress in PR systems, innovation plans, 5S, training, plant innovation, customer service improvement programs, among many others. They also have ISO 9001 certification and will be soon certified as Safe Company.

Source: Siglo 21

Mexico City,- Toyota stays as number one in car sales all over the world in the first half of the year, leaving General Motors second and Volkswagen third. They are followed by the South Korean Hyundai in fourth place, Ford in fifth, Peugeot-Citroen in sixth, Honda seventh, Nissan eighth (which is not ranked together with Renault), Suzuki ninth and Renault tenth. Four Japanese assemblers in the Top 10. It is just fair to clear out that the source is not summing up sales by Nissan and Renault together, which would put this alliance after VW. Renault and Nissan posted sales in the first half of the year of 2´652,965 units. Statistics provided by Automotive News' Data Center and Reuters for Hyundai, will help better understand the composition of automotive forces, their origin and geo-economic aspects that will be at stake in 2010-2020 decade.

Source: Al Volante