Toyota to build new Plant in Guanajuato, Mexico

theyucatantimes.com

Toyota Motor is planning new Chinese and Mexican factories, ending a freeze on plant construction to better compete against Volkswagen and other global rivals.

The Japanese automaker will make an announcement later this month.

It expects to spend some 150 billion yen ($1.25 billion) on the new facilities, opening them in 2018 in China and 2019 in Mexico. Together, they will boost Toyota’s annual production capacity by up to 300,000 vehicles.

These will mark the first new Toyota factories since a Thai facility that opened in 2013, when the company halted plant construction to focus on honing profitability.

The Chinese plant will be built in the city of Guangzhou, where Toyota has a joint venture with Guangzhou Automobile Group, and make the Yaris subcompact. It will churn out up to 100,000 cars a year. Eyeing the growing demand for autos among the middle class in China, Toyota aims to raise its market share there from 4% by offering more small cars.

Toyota will make the Yaris subcompact at the new Chinese plant (Photo: nikkei)

In Mexico, Toyota’s factory in the state of Guanajuato will have a maximum output capacity of 200,000 cars a year. The plant will operate around the clock, building a new version of the Corolla sedan for North America. A Canadian factory that now builds Corollas will instead make bigger vehicles. Toyota sees low Mexican production costs helping it achieve more competitive pricing in the U.S., where it holds a 14% market share.

The new factories will require 40% smaller initial investments compared with 2008 outlays. Toyota has cut setup costs by reducing assembly line steps and using stripped-down production equipment. The new plants will be able to retool for different models in a few days, as opposed to nearly a month at older facilities. Such cost-saving adaptations should help them maintain profitability even when output drops sharply.

Until around 2008, Toyota had added 200,000 to 300,000 vehicles of new capacity a year, propelling its global expansion. But this buildup created fixed costs that left it exposed to the crash in automobile demand that followed the global financial crisis. Stung by a full-year operating loss, Toyota announced a three-year freeze on plant construction starting in fiscal 2013. It has since concentrated on boosting earnings capacity and has something to show for it: group operating profit for the just-ended fiscal 2014 is seen coming in at an all-time high.

Once the new factories are up and running, Toyota’s worldwide production capacity will reach 11 million vehicles.

Source: http://asia.nikkei.com/

February Unemployment Lowest in 7 Years

by Murry Page
28 Mar 15
mazmessenger.com

The National Institute of Statistics and Geography (INEGI) released the country’s unemployment numbers for February, which revealed that México’s unemployment rate for the month was 4.3 percent of the economically active population (PEA).

The 4.3 percent rate was down from the 4.7 percent reported in February of 2014. It was also the lowest rate for the month of February since 2008, when it stood at 3.89 percent.

When seasonally adjusted the unemployment rate was 4.5 percent of the PEA, the same level as seen in January.

Based on the National Survey of Occupation and Employment, during the month of February 59.4 percent of the population that is 15 years of age and over is economically active, down from 59.5 percent reported in the same month last year.

Unemployment by gender revealed that the unemployment rate for men fell from 4.6 to 4.3 percent between February 2014 and December 2015, and the unemployment rate for women dropped from 4.8 to 4.3 percent in the same period.

(from El Sol de Mazatlán)

Sinaloa Adds 24,000 Jobs in February, 2015

 by Maureen Dietrich
16 Mar 15
mazmessenger.com

With the addition of 24,431 jobs in February this year, Sinaloa reached a total of 474,406 workers registered with the Instituto Mexicano del Seguro Social, an annual increase of 5.4 percent in formal employment.

The number of new jobs registered in February is more than double the number registered in the same period last year which was 11,890.

(from Noroeste)

OECD: México’s has 3rd Lowest Unemployment

by Murry Page
11 Mar 15
mazmessenger.com

The Organization for Economic Cooperation and Development (OECD) reported that for the month of January of this year México had the third lowest unemployment rate of all member countries. It ranked only behind Korea and Japan.

According to information released by the OECD, México’s unemployment rate for January stood at 4.4 percent, up 0.1 percent from the prior month, but well below the OECD average of 7.0 percent for January.

The rate of unemployment among Mexicans between the ages of 15-24 dropped to 8.3 percent in January from the 8.8 percent reported in December. The unemployment rate for those 25 and older rose to 3.5 percent from the 3.3 percent seen in December.

The rate of unemployment for Mexican women was 4.4 percent, while the rate for Mexican men stood at 4.3, both unchanged from last December.

The five OECD countries with the lowest unemployment rates were Korea (3.4 percent), Japan (3.6 percent), México (4.4 percent), Iceland (4.5 percent) and Germany (4.7 percent).

(from Azteca Noticias)

México Has One of Lowest Unemployment Rates

by Murry Page
14 Jan 15
mazmessenger.com
 

The Organization for Economic Cooperation and Development (OECD) reported that in November of 2014 México had the fourth lowest unemployment rate of its 32 member countries.

A spokesperson for the OECD said that México’s unemployment rate for November 2014 stood at 4.7 percent, well below the average of 7.2 percent for all member countries.

The OECD said México’s workforce remained stable for the second consecutive month, which includes 2.443 million workers, 56,000 more than that recorded in October of 2014.

By age groups, the unemployment rate for youth in México rose to 9.8 percent in November of last year down from the 9.3 percent seen in October, while the adult unemployment rate fell to 3.6 percent from 3.7 percent in October 2013.

The OECD report revealed that the OECD countries that had the highest rates of unemployment in November of last year were Spain with 23.9 percent, Portugal with 13.9 percent, Italy 13.4 percent, Slovakia with 12.6 percent and Ireland with 10.7 percent.

Those OECD countries with the lowest unemployment rates were Korea with 3.4 percent, Japan with 3.5 percent, 4.6 percent Iceland, México with 4.7 percent and Austria with 4.9 percent.

(from El Sol de Mazatlán)

Dunkin' Brands Enters Mexico with Sizzling Platter Deal

zacks.com

Dunkin' Brands Group, Inc. (DNKN - Snapshot Report) announced that it has inked a franchise agreement with the Mexico based subsidiary of Sizzling Platter, LLC – a franchisee of Dunkin' Donuts – in the U.S., to develop restaurants in Mexico. Per the deal, almost 100 Dunkin' Donuts restaurants will be opened in the Distrito Federal, as well as the states of Hidalgo, Mexico, Morelos, Jalisco and Queretaro, in the upcoming years.

The restaurants in Mexico will offer its selection of hot and iced coffees, espresso, cappuccino, lattes, teas, frozen drinks, bagels, muffins, croissants, donuts and sandwiches. The restaurants will also serve certain locally popular menu items. In fact, Dunkin' Donuts is famous for its different doughnut varieties and coffees around the globe.

After reporting disappointing third-quarter results, and warning that it might struggle to achieve its long-term growth targets, Dunkin’ is looking to diversify its footprint in the international markets. The company’s top line was hurt in the last-reported quarter by a saturated fast food restaurant segment coupled with a sluggish macroeconomic environment and reduced consumer spending in the domestic market.

Currently, Dunkin' Donuts has more than 11,000 restaurants in roughly 33 countries, including nearly 8,000 restaurants in North America, Aruba, the Bahamas, Canada, Guatemala, Honduras, Panama and the United States.

The company’s expansion in Mexico is a strategic fit as the increased consumption of coffee drinks such as lattes or cappuccinos has considerably boosted the per capita consumption of coffee in the region, according to Euromonitor International — a leading market research firm. Further, by 2015, Euromonitor expects per capita consumption of coffee in the country to be nearly 2 kilograms.


Such high demand for coffee-related products will support growth for cafés in the country. We believe that the Massachusetts-based quick service restaurant operator will stand to gain from this spurt in demand for coffee in Mexico.

Dunkin’ Brands currently has a Zacks Rank #4 (Sell). Better-ranked stocks in the same industry include Brinker International, Inc. (EAT - Analyst Report), Chipotle Mexican Grill, Inc. (CMG - Analyst Report) and Darden Restaurants, Inc. (DRI - Analyst Report). All these stocks carry a Zacks Rank #2 (Buy).

Mazda Produces its 100,000th Automobile

by Murry Page

3 Jan 15 

mazmessenger.com

 

In February of last year Mazda CEO Takashi Yamanouchi, federal officials, state legislators, and mayors celebrated the opening of Mazda’s new assembly plant in Salamanca, Guanajuato. By the end of the year Mazda announced that it had produced its 100,000^th vehicle at the new plant, a Mazda2 destined for the European market.

The plant also builds the Mazda3 compact hatchback and sedan.

The president of Mazda de México Vehicle Operation (MMVO) told reporters “The production of one hundred thousand vehicles at MMVO is extremely significant, and we could not have done it without the support of our customers, our suppliers, and our employees, as well as that of the federal and local governments.”

The new Salamanca plant has an estimated annual production capacity of 140,000 units, but Mazda has plans to increase the plant’s output to 230,000 units by March 2016. The increase is in part due to the 50,000 Toyota-branded subcompact vehicles based on the Mazda2 that the automaker will build in México.

The Toyota vehicles will be built under contract with Toyota, beginning in the summer of 2015.

(from Car Scoops)

Mazatlán Fifth in National Popularity for Beach Vacation

by Maureen Dietrich

23 Dec 14  

mazmessenger.com

 

With respect to tourism, the numbers increased 5.15 percent over last year.

With the arrival of more than 1.6 million tourists and an annual median hotel occupancy rate of 54.l3 percent, Mazatlán will close out 2014 ranking fifth of the 19 “sun and beach” tourist destinations in México.

According to preliminary statistics issued by Datatur up to November 23, 2014, Mazatlán registered an increase of approximately 3.77 points in hotel room occupation compared to 2013. The port was one of 15 beach destinations showing a positive number this year.

With respect to tourism, the numbers increased 5.15 percent over last year.

The Top Five “sun and beach” destinations in Mexico this year were:

Cancún: 5.56 million tourists

Acapulco: 4.08 million tourists

Riviera Maya: 3.32 million tourists

Veracruz: 2.48 million tourists

Mazatlán: 1.64 million tourists

(from Noroeste)

Parts makers follow the industry leaders

mexiconewsdaily.com

Light vehicle manufacturing plants in Mexico.AUTOMOTIVE MEETINGS

 

 

 

 

 

 

 

Mexico News Daily | Thursday, December 18, 2014

The world’s auto parts industry is on the move — to Mexico.

The past year has seen new automotive assembly plants begin production — Nissan, Mazda and Honda, plus the announcements of three new ones — Audi, BMW and Mercedes Benz.

Following close behind are those firms that play a supporting role in auto manufacturing, the makers of the parts that the big automakers need.

Among them is TE Connectivity, which will move its plant from Shakopee, Minnesota, to Sonora, bringing 144 jobs and a US $20-million investment.

Another is Delphi with a new factory in Chihuahua: 327 jobs and $109 million coming out of Michigan.

In March, Advanced Motors transferred some production from Texas to Monterrey, moving 60% of its employees. A division of the Japanese firm Nidec, the company makes electric motors.

Another Japanese company is investing some 360 million pesos, or US $25 million, in a plant in San Luís Potosí. JTEKT will move some of its steering systems production from Japan to the new factory.

In addition to being close to the firms that buy their products, auto parts makers are also benefiting from the same advantages that the car makers enjoy in Mexico: location, free trade agreements and quality labor at low cost.

Automotive production is expected to reach over 3.3 million units this year, surpassing 3 million for the first time, and climb to a little more than 3.6 million in 2015.

Source: El Financiero (sp)

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U.S., Mexico, Canada Reinforcing Energy Cooperation

laht.com


WASHINGTON – The top energy officials for the United States, Mexico and Canada on Monday agreed to the outlines of a “new roadmap” for the sector by signing a 15-point agreement including the promise to exchange information and recognizing the need to work together on energy security and environmental policies.

Washington hosted the first meeting in seven years of top energy officials of the three nations, who signed a memorandum of understanding.

“One of the biggest results of the meeting is the 15 points. These 15 points constitute a roadmap for the ... region to integrate itself more from the energy point of view and, in particular, so that our people win in efficiency and energy security,” said Mexican Energy Secretary Pedro Joaquin Coldwell.

At a press conference at the Department of Energy, the three officials discussed Mexico’s energy reform designed to open the sector to private investment, a move that U.S. Energy Secretary Ernest Moniz said was impressive.

On that subject, Coldwell expressed his desire for an increase in commercial exchanges among the energy companies of the three countries after the Mexican reform, a move that included constitutional changes in the country approved in 2013 despite the rejection by the leftist opposition.

It was in that context of change in Mexico’s energy sector that the three officials agreed on the need to exchange information to be able to work together.

Moniz said that figures compiled by the three governments are not always coherent or available, adding that the transparency policy will allow the governments to move forward in the meetings the officials will now hold more frequently, adding that 2015 will be a period of “serious efforts and action.”

At the press conference, reporters asked about the statements last week of Canadian Prime Minister Stephen Harper, who said that his country would commit to a program of reducing greenhouse gases in the oil and gas sectors only if the United States did likewise.

Moniz responded that “reducing carbon emissions is good for the economy and for the environment,” and he mentioned the plan unveiled last June by U.S. President Barack Obama to reduce carbon emissions from the country’s thermoelectric plants by 30 percent by 2030.

Meanwhile, Canadian Natural Resources Minister Greg Rickford said that using coal to generate electricity is a “challenge” and an “opportunity” and the nations of North America must find a solution for it.

He said that Canada was ready to cooperate in that area, given that it has one of the world’s cleanest electricity-production systems, with 79 percent of its energy coming from sources that do not produce greenhouse gases.

After the meeting, Coldwell promised that at the next meeting the teams from the three countries will have “concrete results” regarding the roadmap they traced the outlines of on Monday.

Formal Jobs up 33%

by Murry Page

13 Dec 14  

mazmessenger.com

The Mexican Social Security Institute (IMSS) reported that during the period from January 2014 through November 2014 a total of 950,016 formal jobs were created in México, up 33 percent from the previous 12 month period.

The IMSS report said the increase during the first 11 months of 2014 was the second highest growth reported during the same period since records have been kept.

The report also pointed out that in November of this year alone 122,850 formal jobs were added, which is the second largest monthly growth in formal jobs in the last 10 years.

According to the IMSS, 85.3 percent of these jobs are permanent and 14.7 percent are temporary. The agency said this ratio has remained fairly constant.

The greatest job growth was seen in the states Guanajuato, Baja California, Quintana Roo, Aguascalientes, Guerrero, Zacatecas, Sinaloa, Nayarit, Chihuahua, Coahuila and the Federal District.

The fewest number of new jobs was reported by the state of Baja California Sur, which was down 1.3% due to hurricane Odil. Baja California Sur was followed by the states of Veracruz, Campeche, Chiapas, Sonora, Tabasco, and México.

(from Milenio)

Grupo ARHE Invests 300 Million Pesos in Mazatlán

by Maureen Dietrich

4 Dec 14 

mazmessenger.com

 

Grupo ARHE announced yesterday it will invest over 300 million pesos in four projects in Mazatlán.

Érick Arellano Hernández, director general of ARHE, said in a press conference yesterday the company plans to build a gas station on the Mazatlán-Culiacán autopista on four hectares to include semi-trailer parking, a HIT convenience store and restaurant, tire store and an economic hotel charging 300 or 400 pesos per night geared towards long haul drivers. The station, said Arellano Hernández, will be the largest in the State and the country and provide 300 direct jobs and 600 indirect.

The second project is a smaller HIT six-pump gasoline station in Urbi Vallas del Real beside the Supermercados MZ.

For their third project, the group will construct a condominium called “Amaralta” on Cerro del Vigía of 24 apartments, some of which have already been sold, the director general said.

The last of the four projects is Buks, Business Keys, a business center that will be constructed in front of the Convention Center in the Marina. 

(from Noroeste)

Nissan to Import and Export Cars through Mazatlán

by Murry Page

21 Nov 14 

mazmessenger.com

 

Yesterday Mazatlán’s Mayor, Carlos Felton, told reporters that beginning in the second half of January next year Nissan will begin importing and exporting its automobiles through the port of Mazatlán.

Initially the port of Mazatlán will handle approximately 45,000 Nissan cars, the mayor said. The number is expected to grow to 65,000 cars annually, matching the numbers the city saw five or six years ago.

An expected 150 jobs will be creating in the city by virtue of this new business.

Governor Mario López Valdez and Airton Cousseau, Managing Director of Nissan Mexicana, said a formal ceremony would take place in the second half of January, 2015, when the first shipment of automobiles occurs.

Nissan Mexicana currently imports and exports its cars through Lazaro Cardenas, Tamapulias.

(from El Debate)

Governor, Mayor, Woo Nissan Motors to Mazatlán Port

by Maureen Dietrich

19 Nov 14  

mazmessenger.com

 

Nissan Motors is considering Mazatlán as an embarkation port, and to make the project a reality Sinaloa Governor Mario López Valdez and Mazatlán Mayor Carlos Felton left today for Mexico City to begin discussions with Nissan executives.

Although the dredging of the port has not been completed, Felton stated the city has all the logistical attributes necessary and pointed out as proof that other car companies have used the port to store vehicles.

The Mayor stated he was confident the first 1,300 million pesos promised by Mexican President Enrique Peña Nieto to modernize the port will be received in 2015. (from Noroeste)

México on Track to Break 2013 Record for International Tourists

 by Murry Page

18 Nov 14 

mazmessenger.com

 

México’s Ministry of Tourism told reporters that based upon information obtained from the Bank of México during the first nine months of this year international tourists spent $12.37 billion during their stay in the country; up 17.4 percent over the same period in 2013.

With these expenditures, the Ministry of Tourism said that for the year 2015 México will probably break the 2013 expenditures by international tourists, which was $13.8 billion.

The 21.1 million international tourists who have visited the country this year exceeds last year’s number for the same period by 3.2 million, or an increase of 18.2 percent. For the year 2013 México saw a total of 23.7 international tourists.

International tourists arriving by air is up 1.4 percent for the January to September period, while those arriving by ground were up 30.5 percent.

(from El Sol de Mazatlán)

Good Year for Investments, Employment in Mazatlán

by Maureen Dietrich

17 Nov 14 

mazmessenger.com

 

Private investment and new employment opportunities in the city exceeds the national medium.

Mazatlán will end the year 2014 with private investments totaling 7,000 million pesos and 9,000 new jobs said Hilda Inukai Sashida, Municipal Secretary of Economic Development.

The historic numbers are a result of the municipality working together with the Sinaloa Government to attract, retain and foment private investments in the port by showcasing its location and offering financial incentives, Inukai Sashida stated.

Investors have shown their confidence in Mazatlán with the result that private investment and new employment opportunities in the city exceeds the national medium so far this year.

Speaking to reporters yesterday, she also advised the construction of Mazatlán´s newest shopping center, Plaza Sendero, is progressing on schedule and will open on November 20. 

(from Noroeste)

Nissan-Mercedes Partnership to Benefit México

by Murry Page

6 Nov 14  

mazmessenger.com

 

In 2010 automakers Daimler AG‘s Mercedes-Benz and Nissan Motor seem to have formed the ideal partnership, with the German company offering advanced automotive technologies, while its Japanese counterpart offers problem-free production facilities. Now with the demand for luxury cars rising Daimler partnership with Nissan has extended to jointly build compact luxury models in México.

Both Daimler and the Renault-Nissan Alliance will together invest around $1.4 billion in México. With increasing disposable incomes and a rising proportion of the population upgrading to entry-level premium vehicles from their large non-luxury sedans, México sales for Mercedes-Benz could rise. However, the biggest advantage for Mercedes-Benz with respect to its México plans would be the cost-cutting benefits derived from local production in the low-cost country.

Armando Avila, vice president of manufacturing for Nissan Mexicana, told reporters on Wednesday that by the end of March or early April next year construction of a new plant will begin for the production of the Infiniti and a year later the production, for the first time in México, Mercedes-Benz vehicles.

Armando Avila said he expects the new plant to produce 300,000 vehicles a year, some for Infiniti and other for Mercedes. Avila stated that the plant will have two production lines, one for Infiniti and the other for Mercedes-Benz.

He said that during the first quarter of 2017 production of the Infiniti will begin, while the production of the Mercedes-Benz to start a year later.

(from Milenio)

US tourism to Mexico increases

 Monday, 27 October 2014 00:10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

thenews.com.mx

US tourism to Mexico increases

BY LILLIAN REYES

The News

MEXICO CITY – The air travel tourism market stemming from the United States increased 13.3 percent, registering 5,162,534 tourists from January to August this year, in comparison to the same period last year.

The General Director of the Mexican Tourist Promotion Council Rodolfo López Negrete said that based on the information from the Comprehensive System of Migratory Operation (SIOM) from the Migratory Policy Unit of the Interior Secretariat (Segob), the majority of the nation’s tourism markets have increased.

As part of the Third Ordinary Session of the CPTM Governing Board, López Negrete said that other important growing markets were in Europe. The United Kingdom grew 9 percent with 302,950 tourists; Spain by 9.6 percent with 212,104 tourists; Germany by 11.6 percent with 132,191 tourists and Italy by 11.1 percent with 116,831 tourists.

He also said that growth in the Latin American market was evident in Colombia with a 24.4 percent increase (201,406 tourists) and also in Brazil, registering a 9.2 percent increase and 197,613 tourists. Asia also maintained good market growth with a 26.1 percent increase (46,844 tourists).

Before the members of the CPTM governing body, López Negrete said that during the first half of 2014, tourism from the United States grew 7.8 percent, but from this total, the number of tourists traveling to Mexico increased by 14.1 percent, which represents almost double the normal outbound tourism rate from the United States, according to a report by the United States Department of Commerce.

The previous number implies that Mexico’s market participation increased from 17 percent in the first half of 2013 to 18 percent in the first half of 2014.

Ford Drops Plans for Ontario Plant – Moves to México

by Murry Page

25 Oct 14 

mazmessenger.com

 

Ford Motor Company broke off discussions with provincial and federal governments to build a new engine plant in Windsor, Ontario, saying its investment and jobs would be going to México.

Jerry Dias, president of Unifor, the labor union representing autoworkers in Canada, said the inability of the provincial and federal governments to reach a deal with Ford means an end to an expansion that would have created 1,000 jobs in Windsor.

Dias added, “We are disappointed. The auto industries that are flourishing around the world are ones where there is a deep commitment from government and an understanding of the importance and wisdom of investment, which always pays dividends.”

Brad Duguid, Canada’s Economic Development Minister, said in a statement that Ontario is willing to partner with businesses to create jobs. However, he added, “But we will not invest taxpayer dollars in any partnership that doesn’t provide a strong return for Ontarians. This includes creating good jobs, anchoring key facilities, building an industry supply chain, fostering research and development and leveraging a larger investment from the private sector.”

(from canoe.ca)

Cisco to double Mexico investment

 

 

 

 

 

 

Mexico News Daily | Saturday, October 18, 2014

The technology firm Cisco Systems Inc. plans on doubling its investment in manufacturing in Mexico by as much as US $2 billion a year, improving processes, implementing its Internet of Things (IoE) initiative and contributing to smart manufacturing.

The company’s Latin America chief, Jordi Botifoll, said at a press conference this week that Mexico is in a position where it could gain ground over other countries and improve its competitiveness.

He said smart manufacturing, in which automation and information technology are incorporated into manufacturing processes, would make Mexico more attractive to multinational firms.

The company’s director of business development for IoE said manufacturing has been isolated from the internet, that systems used to be closed, but smart manufacturing is changing that. Horacio Werner also said Cisco is working with the government to generate a smart manufacturing community to bring the benefits of IoE to manufacturing areas.

There are challenges in terms of security, he said, and what preoccupies investors is knowing the country is safe and predictable and has interconnectivity and automated systems and processes.

It’s an important time, Werner said, because in the next 12 to 24 months a large quantity of Chinese manufacturing is going to move. “. . . if Mexico isn’t prepared to be more attractive, more than it is at present, it’s going to lose a historic opportunity.”

Cisco Systems has had a manufacturing base in Mexico for 20 years, and the components produced here are worth $8 billion annually.

Source: El Financiero (sp)

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