Mexico will surpass Brazil as top Latin American car producer

 Sunday 27 July 2014

arabnews.com

Mexico is poised to overtake Brazil as the top Latin American automobile producer for the first time in more than a decade and is projected to hold its advantage through 2014, for the first full-year lead since 2002, according to consultant IHS Automotive. 
Mexico is witnessing surging exports to the US and factory openings with record output.
The boom coincides with a slump in Brazilian production through May as domestic demand cools, setting up a shift in leadership of the Latin American industry faster than analysts predicted.
“The wind is in our sails” in Mexico, said Luis Lozano, lead automotive partner at PricewaterhouseCoopers in Mexico City. 
“People talk about the energy and telecom industries in Mexico, but the auto industry is going to continue as the icon of this country.”
The diverging fortunes of Mexican and Brazilian auto production reflect the state of their biggest markets. 
Brazil-made cars and trucks are too expensive, given high labor costs and taxes, to send abroad and go mostly to local buyers. 
Mexican factories export eight of every 10 cars they produce — with more than half going to the US.