Mexico’s German auto history began with small, cheap cars. Now it’s becoming a place where top-of- the-line German brands roll out of billion-dollar factories.
Volkswagen ushered in the German auto-production era in México by building Beetles from 1967 to 2003 in the state of Puebla. The cars were once the vehicle of choice for México City taxi companies, with thousands in green-and-white beetles plying the capital’s streets.
According to IHS Automotive consultant Guido Vildozo, by the end of this decade México will claim fourth place worldwide for German luxury output after the carmakers’ home country, China and the U.S.
Earlier this year Bayerische Motoren Werke AG (BMW), the biggest premium-vehicle producer, of the three German marques after Audi and Daimler AG’s Mercedes- Benz, decided to build a plant in México after the Audi and Mercedes-Benz decided in 2012 to build cars in México.
IHS Automotive Managing Director Michael Robinet said, “Mexico has become the crossroads of automotive trade for the western hemisphere.”
The German luxury automakers jumped ahead of some competitors that are still refining strategies for México. In August South Korea’s Kia Motors Corp. announced a more than $1 billion project, while Toyota Motor Corp., the last major automaker without a high-volume México assembly plant, is still studying expansion plans.
Armando Soto, president of Kaso & Asociados, a Mexico City-based auto industry consultant, said that the Mexican factory quality, a surge in engineers and an expanding domestic parts industry all helped pave the way for BMW, Mercedes-Benz and Audi.
“This was quite an easy decision,” Bernhard Eich, the BMW director for the new San Luis Potosi plant, said. “We are very confident we will find the skilled workforce. We have a huge supply network in Mexico.”
(from The Globe and Mail)
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