Workers assemble an automobile at a plant in Cuautitlan, Mexico. (Photo: EFE/File)
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.
Comments
more recommended stories
Xcaret postpones the 14th edition of the Sacred Maya JourneyThe return of the traditional Sacred.
A woman is crushed to death when a tree falls on top of her car on the Mérida-Valladolid highwayA strange accident happened on Thursday,.
With these local flowers, you help prevent the loss of bees in YucatanEvery May 20, World Bee Day.
US government officials talk about UFOs publicly for the first time in 50 yearsTwo senior U.S. defense intelligence officials.
The US Embassy to invest 30 million USD in the “South of Mexico Generating Employment and Sustainability” programIn alliance with seven governments from.
Face-to-face courses return to La Ibérica de Mérida; they will celebrate a big event on SundayOn Sunday, May 22, the Centro.
Construction worker arrested for sexual abuse against a maid inside a hotel in Tulum, Quintana RooThe municipal police of Tulum, in.
Yucatan is about to receive the first cloud of dust from the Sahara desert in 2022A cloud of dust from the.
Yucatecans seek to sell one ton of Cochinita Pibil and 6 thousand panuchos in Mexico CityWith the “Yucatán Expone” program, Yucatecan.
Mérida Municipal Police officer returns wallet to owner with more than 5 thousand pesosThe Mérida Municipal Police agent Roberto.
Leave a Comment