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).

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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