According to an article published on Tuesday June 14, on the Chicago Tribune, the great Mexican auto boom, fueled by an almost $26 billion investment rush from foreign carmakers, is cooling off — and weakening a pillar of Latin America’s second-largest economy.
Auto production has fallen four straight months, the longest streak since 2009, led by drops at Fiat Chrysler Automobiles, Mazda Motor Corp. and Volkswagen. Export-oriented factories are selling fewer vehicles overseas as shipments to the United States stagnate and sales to the rest of the world tumble.
Cheaper gasoline prices have undercut demand for the small cars Mexico specializes in, especially in the U.S., its main foreign market.
That’s slowing down the nation’s marquee manufacturing industry since Mexico exports about four out of every five vehicles it makes. The decline also marks at least a temporary hiatus in Mexico’s automotive ascent after a 50 percent jump in vehicle output in the five years through 2015.
“It’s a yellow alert for the Mexican economy because auto exports represent about a quarter of total exports,” said Carlos Capistran, chief Mexico economist at Bank of America, in a telephone interview.
That’s one reason he’s forecasting an economic expansion of 2.3 percent this year, lower than the 2.5 percent median of 26 analyst estimates compiled by Bloomberg.
more recommended stories
Odebrecht in Mexico… What is AMLO’s administration going to do about it?
MEXICO CITY, Sept 18 (Reuters) –.
Yucatecan engineer from Valladolid wins the Proser Prize
The School of Engineering of the.
Cozumel returns to lead the cruise industry in Mexico and South America
The general director of the Port.
According to Mexican businessmen, the Maya Train project will only be profitable for Quintana Roo and Yucatán
In spite of the planning of.
2018 Merida’s International Festival of the Maya Culture has been cancelled
The State Government reported that it.
Organic products are becoming more popular in Mérida
Everyday, more and more companies offer.
Local transport companies will invest 250 million pesos in new Cancun-Tulum Metrobus
In order to cover the growing.
While Venezuelans suffer and die of hunger, Maduro eats at one of the most expensive restaurants in the world (VIDEO)
A viral video showing Venezuelan president Nicolás.
Tulum’s “La Calma” Ecoresort master plan rejected by Semarnat
On September 12th, the environmental organization.
Organ donation culture increases in Yucatan
September 17, 2018 (ACOM) .- The.