HELLA de México plant in Guanajuato, one of 1,400 auto parts factories. HELLA de México plant in Guanajuato, one of 1,400 auto parts factories.

Parts sector is biggest in terms of trade

Mexico supplies US with 40% of its automotive parts

The automotive parts market between Mexico and the United States is the largest intra-industrial trade in North America, according to data furnished by the Mexican Automotive Industry Association (AMIA).

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Mexico is the United States’ chief supplier, providing it with nearly 40% of the auto parts it consumes, while at the same time importing 54% of the materials used in the manufacture of those same parts. Canada is the second biggest supplier to the U.S.

For the president of AMIA, the success of automotive manufacturing in Mexico is based on its competitiveness in the region, and the production of parts is a big part of that.

“In North America, this industry is mutually necessary for the three countries . . . .” said Eduardo Solís.

The president of the National Autoparts Industry (INA) says the sector has 1,400 factories in Mexico and employs over 750,000 people, making it the biggest employer in the automotive industry. Oscar Albín said the production of parts represented close to US $83 billion last year, ranking Mexico in sixth place worldwide.

“From bumper to bumper,” you can find all kinds of auto parts in Mexico, he said.

“Mexico’s appeal as auto parts producer is not only based on its low-cost workforce, but also in the excellence in manufacturing we’ve reached in 20 years. The quality and productivity attained in Mexico are the main appeal and keep investments coming,” he added.

Faced with the U.S. threat of imposing tariffs on vehicles manufactured in Mexico, the industry leaders said the sector is so intermingled that any changes would have repercussions in both countries.

Source: Milenio (sp)

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  • cooncats

    Here’s a novel idea. Why doesn’t Mexico just admit there’s a problem on their northern border and commit to being a full partner in dealing with it?

    The next time a bunch of Mexicans take to the streets of the U.S. waving their flag and insulting the American people, why don’t prominent politicians here tell them their manners suck and to knock it off?

    Why don’t the same politicians admit it was wrong and apologize for publishing a handout for border jumpers that included telling people how not to get caught?

    In short, why doesn’t Mexico try openly supporting the same rules and respect for the U.S. border and expats that it has here and expects and gets from American expats?

    So here in this story we read of an industry that employs three quarters of a million people and 40 percent of what they do is bought by the U.S. and most of the rest either bought by Canada or used here. It is a damned good bet that the Chinese are NOT significant buyers.

    We have mainly U.S. tourists spending over $20 billion per year here. We have U.S. employers paying Mexicans north of the border billions, of which over $26 billion is sent here annually to support Mexican families and investment.

    And Mexico have a trade surplus of $60 billion per year with the U.S. I’d say that’s a pretty strong argument for addressing some very legitimate gripes Americans have about what goes on at that border and Mexico’s role in it. Instead, Mexico are attacking America for getting fed up with border jumpers, drug cartels, and people who bite the hand that feeds them by rioting in the streets there.

    Mexican politicians, papers and more than a few Mexican people piss and moan about being disrespectful while they openly disrespect American immigration law, the U.S. border and the American people.

    Mexico are now kissing up to the Chinese economic imperialists who are already sucking $50 billion per year OUT of Mexico. Mexico are telling the people who support them to the tune of several hundred billion per year sent INTO Mexico to drop dead while they’re sucking up to the Chinese for, are you ready, building a lousy car plant that employs a couple thousand people and mainly uses parts IMPORTED from China.

    That should work wonders for increasing the trade deficit with China. In fact, you can’t find a country that China trades with that doesn’t lose money on the deal. It looks like Mexico wants to be the latest trade victim of China while they drive away their best customers.

    How stupid can you get Mexico?

    • Hailey Mannering

      What most of us in Mexico disrespect is President Trump, not the US people. Some also feel Mexico should stop co-operating in the war on drugs, which is a destructive war not intended to benefit the general public in either country.

      • Charliej

        If the US puts tariffs on Mexican products, Mexico should immediately stop all imports of grain from the US. See how Trump likes listening to US farmers cry about bankruptcy.

        • Jose Yates

          American farmers are subsidized to grow and ship grain globally. We grow 50 times more food than we need and it’s only possible because tax money is given to farmers to ensure it’s profitable to that farmer. Trump will likely cut them subsidizes so farmers won’t have a reason to grow so much extra food. Grow for our own consumption only. Let Mexico buy grain from china.

        • Hailey Mannering

          Amen to putting tariffs on grains and corn too. That will put 2 million Mexican farmers back to work, not to mention the indirect spin offs.

      • cooncats

        I suggest you read the article here about the club in Playa del Carmen closing because of insecurity and extortion. When these criminals can’t sell drugs, they turn to other crimes. The issue is that a failed Mexican government cannot provide basic security. Also you might want to notice that the gangs discussed are “replenishing” their ranks with illegal Guatemalan immigrants. Mexico seems to be getting a taste of its own medicine along the southern border.

        • Hailey Mannering

          Merida and the entire Yucatan state plus almost all of Campeche state are safe and have been safe for at least many decades. There are many other safe areas of Mexico. Sorry, the truth will get out no matter how much fear mongering is done.

    • michael

      Yea dang if only those Mexicans would listen to Trump and shoot people trying to cross over. The arrogance and ignorance of the American conservative is unbelievable. The conservative has a myopic view of the world . I really think they all want to go back to Mayberry circa 1962. This is not about the border and illegals it is about intolerance and hatred. It is about nationalism. The world is multicultural and there is not a damned thing you can do to stop it. Nunca.

      • cooncats

        I see. So you have no objection if uneducated, penniless people start pouring into your country. Is that why you are deporting Cubans and brutalizing immigrants on your southern border?

        The arrogance of hypocrites is what you demonstrates for us. Thanks.

      • Jose Yates

        No Latin American country including Mexico is multicultural. They are overwhelemling Latino nations and they are also failed nations. There’s not even one first world Latino nation on the planet. Only Canada and the USA have first world status in the Western Hemisphere and every Latino is busy trying to steal as much as possible from those 2 countries.

    • Jose Yates

      Mexicans hate gringos and the United States. They delight in cheating the gringo and causing harm. The pure blood ruling class of corrupt Mexicans teach the Mexican peasant class Mexicans that their children are hungry because of American gringos. They teach them that it’s patriotic to sneak into the gringos country and take whatever they can and send it back to Mexico. Mexicans in Mexico City live a good life, while the mixed race mexicans starve. Mexico City decides who runs Mexico because they have no electoral college and that won’t change anytime soon. It doesn’t matter how many American companies leave Mexico the corrupt leaders won’t suffer, only the peasant class will suffer a little more, they had little to begin with so having nothing means nothing.

      • cooncats

        I really wouldn’t go so far or agree with this first sentence. The U.S. created this problem with years of “wink and nod” policies at the border so a few greedy corporations could get dirt cheap, pliable labor. However, I think you characterize the Mexican oligarchy that has taken advantage of American stupidity and greed and now is orchestrating a hate campaign to try and keep their racket going. Using America as a dumping ground for the people whose economic hopes have been stifled here is how they stay in power.

        The Mexican people are good people with very bad government. I really wonder if had the oligarchs not been able to dump millions across the border and basically keep the economy alive on exports based on cheap labor and remissions if there would have been yet another revolution in this country.

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