Bulletin 448 - Friday, November 27, 2009

Chihuahua, Cd Juarez,- "Suppliers chain goes hand in hand with maquila industry, and therefore rebound in one reflects in the other", says Jose Luis Armendariz, head of Suppliers Committee of Maquiladoras Association (AMAC). He said that recovery of jobs, overtime and special shifts, worked days and products shipment in maquiladora industry is starting to repeat in their suppliers. Most manufacturers of local supplies or companies that provide services to maquila companies have left technical stoppages behind, personnel cutoff has stopped and orders are starting to recover, as a result of a rebound in manufacturing plants, he said. "Things started improving in October, because work orders went up and the whole labor force remains occupied now", Daniel Anguiano, from Uniformes Industriales Cridan, said.

Source: El Diario

Saltillo, Coahuila,- The project announced this week for Saltillo by Magna's Cosma International Division will join that of Powertrain Division, which in 2010 will generate 300 new jobs with the expansion of their Ramos Arizpe Plant, and will therefore double the current labor force. Xavier Galindo Valdes, Human Resources Manager for Magna Powertrain Plant, informed there is another project coming to supply products to General Motors and Ford, such as shafts and transmission parts for pick-up trucks to these companies' plants in Mexico and the USA. He pointed-out that last summer there were 150 workers in Ramos Arizpe plant, a figure which currently reaches 313 and in 2010, with the new projects the factory is expected to have more than 600 workers.

Source: Zocalo

Mexico City,- With an investment over MEP$8 million (US$620 thousand) in inventories and construction, Isuzu Hidalgo joined Isuzu dealers in Tijuana, Acapulco, La Paz and 26 other dealers, to add to 27 agencies that have been officially inaugurated. Isuzu dealing agencies will soon be inaugurated in Celaya, Merida, Villahermosa and Cuernavaca, as well. This was announced by Takeshi Wakayama, Operations President and CEO for Isuzu Motors de Mexico during the inauguration of this sales and service point, where he also mentioned the figure soon to be reached of 2 thousand 500 units sold in 2009 and 10 thousand units sold in the four years this brand has been selling in Mexico. Interviewed at the end of the event, Carlos Aguillon, General Manager, Isuzu Hidalgo, recalled the agency's inauguration on June 1, 2008 and further said that from January to date around 42 trucks have been sold at the State of Hidalgo this year, mainly to logistics, courier and gas companies, for which Isuzu trucks are especially suitable.

Source: Portal Automotriz

Chiapas, Mexico,- The automotive company Zilent, which sells electric cars, started operating in Chiapas, and at the beginning will have 3 thousand environment-friendly, state-of-the art, 100% electricity-powered vehicles for sale; the first car of its kind to be sold in Chiapas. Juan Sabines Guerrero, Chiapas Governor, said that companies such as Zilen will receive full support from his Administration, because these companies generate opportunities and jobs, which is essential for Chiapas. Juan Sabines said that cars using alternative fuels - whether electric or powered with biodiesel, a product for which there is a plant in Chiapas, first in Mexico - will not pay tenencia (tax for owing a vehicle). The private sector invested MEP$5.5 million (around US$420 thousand) in Autos Zilent car dealers in Tuxtla Gutierrez, generating between 50 and 100 direct jobs, and with plans to grow and export.

Source: Portal Automotriz

Mexico City,- Phonak, the Swiss capital company devoted to hearing aids development, production and sale, has got a 20% share of the Mexican market, thanks to outsourced logistics and distribution services. A year and a half after starting operations in Mexico, Phonak has been using DHL Express services to outsource their logistics tasks, an approach that has provided for savings close to 5% in overhead, if such activities were made directly by the company. Due to the fact that hearing aids are highly sophisticated devices, Phonak requires specialized handling to transport and distribute goods to their chain of supply. They make an average of 100 shipments per month through DHL Express, mainly to Mexico City, Monterrey, Veracruz, Guadalajara and Chihuahua, among others.

Source: T21

Xoahuila, Mexico,- Less than a month after Automotive Industry Reactivation Program was implemented, vehicles sales at the state have gone up 25%, according to Jorge Alanis, Minister of Economic Foster. Mr. Alanis estimates that the program, which will be in force from November 1 to December 31, will provide for a 30% increase in sales by the three automotive assemblers working at the State of Coahuila The Decree, which purpose is reactivating automobiles assembly, consists in granting a series of fiscal incentive, including tax rebates of up to 50% on Tax on New Automobiles, as well as 80% discount in Tenencia (tax for owing a car) and free license plates. In Coahuila there are 63 car dealers and three assembly plants: Chrysler, General Motors and Freightliner which manufactures trucks.

Source: El Economista

Mexico City,- Volkswagen AG will invest US$29,550 million within three years (2010-2012) to modernize their vehicles, motors and technology to reduce polluting emissions and save fuel. Half of this investment will be made in Germany, according to Martin Winterkorn, Chairman of the Board of Directors of this German company which this year could surpass Toyota as world leader. This information was disclosed today in Frankfurt del Main, and may be attributed to Reuters, where Volkswagen AG informed about this €19.9 million investment to be applied in three years, from 2010 to 2012 -half of it in Germany- in order to improve vehicles, work on motorizations and most of all to save fuel and reduce polluting emissions. Around €13.3 million will focus on vehicles and the rest on motorization technologies, Volkswagen said. Another point of interest is that VW could surpass Toyota as world leader in automotive production, even if they should do it without the participation of its subsidiaries, where it is a minor stockholder.

Source: Debate

Guadalajara, Mexico,- At least 12 production projects were attracted this year by Mexico, instead of going to China, as a result of a change in Chinese competitive conditions. Yuan revaluation, shortage of qualified labor to manufacture high technology, ecological and quality problems in China, in addition to higher labor costs, were factors that changed the scenario there to compete for new customers and keep those they already have. According to Cesar Castro, Chairman of National Council of Maquiladora and Export Manufacturing Industry , China is losing competitiveness in labor costs and is becoming equal to Mexico. "We think in 2010 we will be equal; of course, distance will provide logistics advantage to Mexico. There is therefore a very positive outlook".

Source: El Mural