Published On: Mon, Dec 22nd, 2014

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

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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.

Light vehicle manufacturing plants in Mexico (Image: Automotive Meetings)

Light vehicle manufacturing plants in Mexico (Image: Automotive Meetings)

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.


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  1. John says:

    Has Any of thèse companies thought if everyone is out of work in thé US who is going To be buying new cars ???????

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