Mexico 2011 Auto Production Hits Record 2.56 Million Units

By Laurence Iliff, Of DOW JONES NEWSWIRES

Jan 11, 2012

MEXICO CITY -(Dow Jones)- Mexico produced a record number of cars and light trucks in 2011, thanks in large part to strong export demand, and output could be similar in 2012 although there is a risk from an economic slowdown in Europe, the Mexican Automobile Industry Association, or AMIA, said Wednesday.

AMIA said 2011 production grew 13% compared with 2010 to a record 2.56 million units . Auto exports last year rose 15% from 2010 to 2.14 million vehicles, also a record and the first time exports hit the 2 million mark.

Domestic auto sales last year grew 10% to 905,886 units, but remained below the level in 2007, prior to the 2008-2009 recession.

For the month of December 2011, AMIA said, auto production grew 5% compared with the year-earlier month to 180,163 vehicles. Auto exports rose 16% in December to 171,319 units, and domestic sales grew 10% compared with December 2010 to 115,696 vehicles.

The head of AMIA, Eduardo Solis, said auto production this year could be similar to 2011, but there are warning signs that a slowing economy in Europe could ripple through Mexico's key export markets in the U.S. and South America, possibly affecting Mexico's overall auto output.