Auto Manufacturing Industry in Mexico

Auto manufacturing in Mexico is rapidly expanding, specifically in the central states of Guanajuato and Aguascalientes as a result of the lowest labor cost structure in North America. Fueling this growth of Mexico’s automobile industry are the world’s largest automotive companies, including Chrysler, Fords, GM, Toyota, Nissan, Mazda, Honda, Volkswagen and Audi, all of which have assembly plants in Mexico. Following in their footsteps is the complete automotive supply chain, tier 1, 2 and 3 suppliers from around the world that see an opportunity to supply the Mexico auto manufacturing companies and simultaneously reduce their overall costs. Many of these suppliers are realizing they can successfully supply both the “local” market and export auto parts and finished goods to the U.S. and abroad under Mexico’s IMMEX program (formally Maquiladora program), taking full advantage of  the Free Trade Agreement, tax, fiscal and other incentives offered to foreign companies manufacturing in Mexico.

Helping Companies Establish Auto Manufacturing Plants in Mexico

Recognizing an opportunity to help automotive suppliers operate in Mexico under the complexity of the IMMEX program, NAPS opened a large, regional office in Guanajuato and began offering its full-service Administration and Compliance Management Program. Within 1 year, central Mexico has become NAPS’ fastest growing market, working with suppliers from the United States, Japan, Canada and throughout Europe. By running 100% of the Human Resource, Accounting, Import/Export, Environmental Health & Safety and all governmental permits and compliance in Mexico, NAPS’ clients can focus all their attention on production, quality control and other non-administrative activities at their Mexico facilities.

The Mexican automotive industry and economy is now the world’s fastest growing manufacturing cluster. The Mexican auto industry is not only gaining recognition within the manufacturing realm but has also contributed generously to Mexico’s economy. Various auto manufacturers in Mexico rely on having their operations in Mexico manufacturing plants for low labor cost and quality auto production. With over four hundred different car models and forty-two different automakers, Mexico could now be considered one of the most diverse automotive production markets in the world. The auto manufacturing industry in Mexico is expected to increase further in the future.

Contact NAPS or call us at (800) 551-8581 today to learn more on how we can assist in expanding your automotive manufacturing operations to Mexico. Join many car manufacturers in Mexico today.