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Peso takes wild ride Wednesday in reaction to the US elections

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MND Staff
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A Mexican 20-peso bill and a U.S. 20-dollar bill on an abstract black background. The Mexican bill is laying over the U.S. bill.
The peso kicked off Semana Santa (Holy Week) at nearly 20 to the dollar. (Shutterstock)

The Mexican peso went on a rollercoaster ride on Wednesday after Donald Trump won the U.S. presidential election.

After closing at 20.08 to the US dollar on Tuesday, the peso depreciated to a low of 20.81 to the greenback in early trading on Wednesday.

The dome of the Bolsa Mexicana de Valores, Mexico's stock exchange, surrounded by skyscrapers in Mexico City
The peso’s volatility Wednesday contributed to several stock values falling on the Mexican stock exchange (BMV), but many rallied after investors apparently picked up some deals. (Andrea Murcia Monsivais/Cuartoscuro)

That position – a depreciation of 3.5% compared to the USD:MXN rate at the close of markets on Tuesday – was the peso’s weakest since August 2022.

The currency subsequently rallied and was trading at 20.16 to the dollar at 6 p.m. Mexico City time.

Mexico’s close trade relationship with the United States makes the peso particularly  vulnerable to political developments in the U.S. During the U.S. election campaign, the likelihood of a Trump victory contributed to the peso’s depreciation to above 20 to the dollar.

However, the slump to 20.81 to the dollar on Wednesday was “a fall some analysts said may have been overdone,” according to the Reuters news agency.

The currency’s rebound to virtually the same position it was at 24 hours earlier supports that view.

Throughout the election campaign, Trump’s threats to impose hefty tariffs on cars made in Mexico affected the peso. The former U.S. president has also pledged to renegotiate the USMCA, and on Monday issued a new threat – a 25% tariff on all Mexican exports if the government of Mexico doesn’t stop what he called an “onslaught” of criminals and drugs to the United States.

Trump made the comments while meeting with farmers at a campaign event in Smithton, Pennsylvania.
On Monday, Trump threatened to impose a 25% tariff on Mexico in retaliation for what he called an “onslaught” of criminals and drugs to the United States. This would require renegotiation of the USMA free trade pact, however. (File photo/Donald J. Trump Facebook)

In recent months, the peso has also been highly sensitive to political developments in Mexico. It depreciated sharply in June after the ruling Morena party won big majorities in Congress that enabled it to pass controversial constitutional reforms such as the recently enacted judicial overhaul that allows the direct election of all Mexican judges.

The Supreme Court’s rejection on Tuesday of a proposal to partially invalidate the reform also contributed to the peso’s plunge on Wednesday morning.

The outlook for the peso 

Chris Turner, global head of markets for Dutch financial services corporation ING, said he couldn’t rule out a depreciation of the peso to 22 to the dollar in coming weeks.

He also said that 2025 could be a “rough year for the peso” ahead of the scheduled review of the USMCA in 2026.

Gabriela Siller, director of economic analysis at Mexico’s Banco Base, said on social media that the peso continues to face “internal risks, especially now” that Morena and its allies are seeking to approve a constitutional reform that would disband a number of autonomous government agencies.

In another X post, Siller acknowledged there is widespread “concern” in Mexico about a second Trump presidency, but stressed the importance of remembering that the former (and soon-to-be) president initiated a trade war with China and signed the USMCA during his first term.

Since the USMCA took effect in 2020, Mexico has become the world’s largest exporter to the United States, and foreign investment in Mexico has increased as a growing number of companies relocate here or expand their existing operations in the country.

Rodolfo Ramos, head of Mexico research at Brazilian bank Bradesco, said that his bank  anticipated “uncertainty on tariffs in the short term” but added that “we remain positive on nearshoring over the medium and long run.”

The current USD:MXN exchange rate is “an attractive entry point” for investors to Mexico, he said.

Former president Peña Nieto, Trump and Canada's Justin Trudeau signed the new agreement in 2018.
While many Mexicans are anxious about a Donald Trump presidency hurting Mexico, Banco Base’s Gabriela Siller reminded her followers on X that Trump signed the USMCA free trade agreement in 2018.

A volatile day on the Mexican Stock Exchange 

The Mexican Stock Exchanges benchmark index declined more than 2.5% shortly after opening, but ended the day 1.77% higher.

The El Economista newspaper reported that the turnaround was supported by investors snapping up stocks that dropped in value early in the day.

With reports from Reuters and El Economista

Electricity plans and no election fears: Sheinbaum’s mañanera recapped

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MND Staff
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Claudia Sheinbaum at a press conference
On Wednesday, Sheinbaum unveiled some details of her electricity transition plan. (Galo Cañas Rodríguez/Cuartoscuro)

Just hours after it became clear that Donald Trump had won the presidential election in the United States, President Claudia Sheinbaum held her Wednesday morning press conference at the National Palace in the historic center of Mexico.

Here is a summary of her remarks about Trump’s victory, energy sector reform and other issues, during her latest mañanera.

Donald Trump standing sideways next to a podium on a stage in a stadium. In the background is a crowd of spectators and behind them a giant US flag that's not visible in full in the photo due to its size
Sheinbaum’s daily press conference began soon after most U.S. media outlets definitively called the U.S. presidential election for Donald Trump. (File photo/Jonah Elkowitz for Shutterstock)

‘No reason for concern’ about a second Trump presidency 

“To all Mexicans, there is no reason for concern. To our compatriots [in the U.S.], to their relatives here, to Mexican business people: there is no cause for concern,” she said despite Trump’s tariff threats and pledge to carry out a mass deportation operation.

* Click here to read MND’s full story on Sheinbaum’s response to Trump’s triumph.

‘The constitution prevailed’ 

Sheinbaum noted that four of 11 Supreme Court justices voted against a proposal to partially invalidate the recently enacted judicial reform, ensuring that large-scale judicial elections can go ahead next year as planned.

“Who voted against [the proposal]? Justice Yasmín Esquivel, Justice Loretta Ortiz, Justice Lenia Batres and also Justice Alberto Pérez Dayán,” she said.

Justice Pérez Dayán of the Supreme Court
Justice Pérez Dayán in a session of Mexico’s Supreme Court in February. (Cuartoscuro)

“I invite you to listen to the intervention of Justice Pérez Dayán. … What he said is, ‘I don’t agree with the reform, but that doesn’t mean that my personal opinion implies that a project of unconstitutionality can be accepted because [the reform] is already in the Constitution,'” Sheinbaum said.

“… There is coherence in the justice’s vote.  … We might have differences with the justice, but in this case reason prevailed, the Constitution prevailed, the rule of law prevailed,” she said.

“… It was good news yesterday … for all Mexicans,” Sheinbaum said.

* Click here to read MND’s full story on the Supreme Court’s decision. 

The energy transition and ‘clear rules’ for electricity sector investors 

“We’re going to move ahead in a sustainable and very determined way in the energy transition,” Sheinbaum said.

“We will reduce the impact on the environment and the emissions that cause global warming.”

Earlier in the president’s press conference, Energy Minister Luz Elena González presented the government’s National Electricity Sector Strategy.

Part of that strategy is having “clear rules” for private investment in the sector, González said.

“Private participation in electricity generation will be maintained with a percentage of up to 46%,” she said.

The state-owned Federal Electricity Commission (CFE) has a guaranteed 54% stake in electricity generation, as per a recently promulgated energy reform.

CFE director Emilia Calleja told Sheinbaum’s press conference that US $23.4 billion will be invested in the utility over the next six years. Over half of that amount – $12.4 billion – will go to electricity generation projects, including renewable ones, she said.

Sheinbaum said that the CFE will continue “growing” and become stronger during her six-year term.

“How? With already proven financial schemes, with which we’re going to continue increasing … [electricity] generation. And a very significant percentage of that will be from renewable energy sources,” she said.

By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)

BYD CEO: US election results do not change investment plans in Mexico

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MND Staff
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Façade of a BYD facility in Mexico.
BYD's president of Mexican operations confirmed the Chinese auto company's plan to build a Mexico plant to the El País newspaper Tuesday. (BYD Mexico/Facebook)

Chinese electric vehicle (EV) giant Build Your Dreams (BYD) announced Tuesday its plans to follow through with building its first plant in Mexico, no matter the outcome of the U.S. election. 

Doubts had surfaced in September after a Bloomberg News report alleged that BYD had postponed its plans for a Mexico plant indefinitely due to uncertainty about the U.S. election. As the Republican candidate for U.S. president, Donald Trump has repeatedly promised to impose prohibitively huge tariffs on Chinese imports.

In February, BYD Executive Vice President Stella Li told Yahoo Finance in no uncertain terms that BYD has no plans to enter the U.S. market via Mexico.

At the time of the Bloomberg report, BYD officials denied that they had wavered in their resolution to build the announced Mexican plant. 

“BYD has a very strong interest in the Mexican market, and to give the people here our products, we intend to build a factory here,” Ray Zou, president of BYD’s Mexican operations told the newspaper El País. 

The company has no intention of exporting vehicles from the Mexico plant to the U.S., El País reported, although some experts have theorized that BYD building a plant in Mexico is a strategy to attempt to skirt U.S. tariffs on Chinese products by importing their cars to the U.S. from inside the USMCA free-trade zone. 

BYD will reveal the new plant’s location soon, reported Forbes. 

“Since the swearing-in of the new Mexican government,” Zou added, “we have had more close conversations with the authorities to determine the best location.”  

Jorge Vallejo, BYD’s general director in Mexico, told Reuters late in August that the firm had narrowed the list of potential sites for the plant to three candidate states. Vallejo, however, did not name them. In October, Vallejo said that he expects BYD to sell 50,000 EVs in Mexico this year, and 100,000 in 2025. 

By the end of the year, BYD will confirm the details of its manufacturing plant in Mexico, which is expected to produce 300,000 units and create over 10,000 jobs.

José Miranda, director of Marketing and Communications for BYD’s Americas operations, stated that the U.S.’s imposition of duties on products from China would not influence BYD’s investment decisions in Mexico. 

BYD presented a new SUV model for Mexico on Tuesday called the BYD Yuan Pro, with prices starting at 599,880 pesos ($29,472).

Several automotive companies, including BYD, Zeekr, MG Motor and Yadea, have stood firm on plans to invest in Mexico, with many developing manufacturing plants. 

With reports from El País, Forbes, Imagen Radio and Reuters

National Guard to work with tracking firms in 5 states to find stolen cargo vehicles

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MND Staff
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Three tractor trailers parked, completely blocking a major roadway. From elft to right, they are lime green, white and white.
Mexican cargo truckers blocking Mexico City's streets in September. They were protesting the prevalence of hijackings and thefts on their routes. (Victoria Valtierra Ruvalcaba/Cuartoscuro)

The National Guard will soon collaborate with Mexican companies that track stolen vehicles in order to increase the recovery of cargo transport vehicles stolen by criminals in highway theft.

The Guard, in conjunction with the National Association of Vehicle Tracking and Protection Companies (Anervp), will focus on Mexico’s five worst states for cargo vehicle theft, where many of the robberies happen as hijackings on Mexico’s highways, according to the association’s new head, Luis Villatoro Martínez. 

Two lanes of tractor trailers on the Mexico-Puebla highway in Mexico
Tractor trailer trucks on the Mexico-Puebla highway, considered one of the most risk-prone in Mexico for cargo vehicle hijackings. (Mireya Novo/Cuartoscuro)

In an interview with the publication Forbes México, Villatoro said that México state, Puebla, Michoacán, Guanajuato and San Luis Potosí report the highest rates of theft of cargo- transport vehicles, with 70% of incidents happening in those states.

“We will have more feedback from the National Guard, the Federal Public Security Ministry and authorities in  [these] five states,” Villatoro said. 

So far this year, Anervp has recovered over 838 million pesos (US $41.6 million) worth of cargo transport vehicles, including 1,225 tractor-trailers, trailers, dry vans, cars, pickup trucks and motorcycles. This resulted in the arrest of 180 alleged criminals and the confiscation of 29 properties allegedly linked to organized crime activities.

Better security on Mexico’s highways needed to attract nearshoring

Over the last few years, the most pressing security concern for foreign companies operating in Mexico has been violent cargo truck hijackings on major highways. According to some estimates by business chambers in the country, an average of 50cargo trucks are hijacked each day in Mexico. 

The Reliance Partners’ Cargo Truck Hijacking Data Portal, which compiles official data published by Mexico’s federal government, reported that 2023 saw 7,862 hijackings, up 3% from 2022. Wal-Mart, Ford, Danone, Chevrolet, Apple, Amazon and other foreign companies have all experienced cargo truck hijacking incidents in Mexico, according to the portal.

Side view of a truck driver seated in his blue tractor trailer
2023 saw 7,862 hijackings of cargo transport vehicles on Mexican highways, up 3% from 2022. Rising trends in such theft could scare off companies interested in nearshoring, one expert warned. (Alaín Hernández/Cuartoscuro)

Cargo theft on Mexico’s highways not only implies economic losses for companies but also, said vice president of the Mexican Institute of Foreign Trade Executives (Imece) Luis Masse Torres, a challenge that could hinder the burgeoning nearshoring trend in Mexico. 

“The first thing these [foreign] companies will notice when they do their risk analysis is that Mexico poses significant dangers regarding highway insecurity,” Messe told newspaper El Economista. “Faced with the very high possibility of losing merchandise or having accidents, surely these companies will think twice or three times before establishing themselves in Mexico.”

What are the top 10 states in Mexico for highway cargo thefts?

According to the National Public Security System (Sesnsp), 10 states accounted for more than 90% of highway thefts in Mexico last year: 

  • México state 
  • Puebla 
  • Michoacán 
  • San Luis Potosí 
  • Morelos 
  • Jalisco 
  • Tlaxcala 
  • Nuevo León 
  • Veracruz 
  • Oaxaca. 

According to the Mexican Alliance of Transport Organizations, the three highways targeted most by criminals in Mexico are the Mexico-Puebla, México-Querétaro and Veracruz-Mexico highways.

With reports from Forbes, El Economista and El Universal

Mexico’s water reserves remain at historic lows as rainy season ends

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MND Staff
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Some dams in Mexico maintain historic lows, due to the extended drought in the country.
Two years of reduced withdrawals will allow the Cutzamala System's reservoirs to recover from the extended drought, Brugada said. (Crisanta Espinosa Aguilar/Cuartoscuro)

As Mexico bids farewell to a very rainy summer season, the country is still experiencing historically low water reserves.

According to the National Water Commission (Conagua), the total water storage of Mexico’s 210 main dams is 80.1 billion cubic meters — 64% of their total capacity — a figure that is 12% lower than the historical average of 91.3 billion cubic meters.

La Boca Dam, which supplies the metropolitan area of ​​Monterrey, has a low percentage of water reserves.
Forty-two dams in Mexico are at or beyond their full capacity, according to Conagua, but 52 are below 50% of their storage capacity. (Gabriela Pérez Montiel/Cuartoscuro/)

Conagua reported that from Jan. 1 to Nov. 3, the country recorded 697.5 millimeters of rainfall, an average amount according to records from 1991 to 2020. 

According to data from the Technical General Subdirectorate of Conagua, the 2024 rainy season “will statistically end on Nov. 30.”

Mexico’s water reserves in numbers

Forty-two dams in Mexico are at or beyond full capacity, according to Conagua, amounting to 8.8 billion cubic meters of water. Meanwhile, 77 of Mexico’s dams reached 75% to 100% of their storage capacity totaling 35.1 billion cubic meters.  

In contrast, 32 dams are between 50% and 75% of their storage capacity, amounting to 28 billion cubic meters. Finally, 57 dams recorded levels below 50%, totaling 8.2 billion cubic meters.

As of Nov. 4, the reservoir with the highest water levels was the Marte R. Gómez dam in Tamaulipas, with a 122% storage level.

Conagua also reported that the three reservoirs that make up the Cutzamala System — which supplies around 28% of the capital’s water — are at 67% capacity, with a total volume of 524.5 billion cubic meters. 

Drought conditions in Mexico

According to the drought monitor published by Conagua and the National Meteorological System (SMN), as of Oct. 31, at least half of the country is not suffering from drought conditions.

However, parts of the Baja California Peninsula, Sonora, Chihuahua, Sinaloa, Durango and Coahuila are still seeing exceptional levels of drought. 

In Chihuahua, which is experiencing drought conditions throughout the entire state, authorities have declared a state of emergency for the second year in a row. Furthermore, authorities expect Chihuahua to receive 40% less rainfall in 2025 than in 2024.

With reports from Raichali, Infobae and El Economista

Mexico to move forward with judicial elections after Supreme Court stalemate

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MND Staff
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Seven of 11 justices voted in favor of a proposal to limit key aspects of the recently enacted judicial reform, one vote short of the special majority required to pass it.
Seven of 11 justices voted in favor of a proposal to limit key aspects of the recently enacted judicial reform, one vote short of the special majority required to pass it. (SCJN/Cuartoscuro)

The Supreme Court (SCJN) on Tuesday rejected a proposal to invalidate key parts of the recently enacted judicial reform, setting the stage for the direct election of more than 1,000 judges next year.

After opposition political parties filed a lawsuit against the controversial judicial reform, Justice Juan Luis González Alcántara Carrancá drew up a proposal under which only Supreme Court justices and electoral magistrates would be elected and all other judges would continue to be appointed based on qualifications and experience.

Supreme Court Justice Juan Luis González Alcántara Carrancá standing at a podium speaking to the Mexican senate
Supreme Court Justice Juan Luis González Alcántara Carrancá proposed to invalidate the provision in the judicial reform that allows all Mexican judges and magistrates to be elected. (Screen Capture)

After hours of debate, seven of 11 justices voted in favor of the proposal, one vote short of the special majority required to pass it.

A subsequent attempt by Chief Justice Norma Piña to lower the number of votes required to approve the proposal to six failed.

Three justices who are widely regarded as supportive of the federal government’s agenda voted against González’s draft ruling, as did Justice Alberto Pérez Dayán.

Pérez is not in favor of the judicial reform, but argued that the SCJN doesn’t have the authority to review and approve changes to the constitution, and that political parties didn’t have the right to challenge the judicial overhaul approved by Congress in September and promulgated by former president Andrés Manuel López Obrador two weeks before he left office.

“I am in no way unaware of the consequences the constitutional reform in question will have on … legal certainty, … the division of powers and the principles of judicial independence,” Pérez said.

“… I personally resent it,” he added.

Chief justice Norma Piña in the Supreme Court
González himself opposed Norma Piña’s effort to set a lower threshold for the approval of his proposal, asserting that “the rules of the game” cannot be “established mid-play.” (Cuartoscuro)

Piña’s proposal to reduce the number of votes required to approve González’s draft ruling to six was rejected by six justices. Six votes will only be considered a supermajority in the Supreme Court once the number of justices declines to nine following judicial elections next year.

González himself opposed Piña’s effort to set a lower threshold for the approval of his proposal, asserting that “the rules of the game” cannot be “established mid-play.”

His draft ruling sought not just to limit the election of judges to Supreme Court justices and electoral magistrates, but also to strike down a “faceless judges” provision that allows judges to remain anonymous when ruling on cases involving organized crime.

Given the Supreme Court’s rejection of the proposal, preparations for large-scale judicial elections to be held on June 1, 2025, can continue.

Almost 1,500 judges, including nine Supreme Court justices, are set to be elected next year from candidates put forward by the president, the Congress and the judiciary itself.

Only three of the 11 current justices — those considered aligned with the government — will contest the elections, while seven of the other eight will resign shortly after they are held. A second round of elections will be held in 2027.

The SCJN’s dismissal of González’s proposal also prevented a potential constitutional crisis, as the federal government had indicated that it wouldn’t comply with a ruling against the judicial reform.

President Claudia Sheinbaum and other federal officials maintained that the Supreme Court doesn’t have the authority to strike down a constitutional reform (or parts thereof) that has already been approved by Congress, ratified by a majority of state legislatures and promulgated by the president.

“The constitution is the maximum law,” Sheinbaum said last week.

Ernestina Godoy, legal counsel to the president, speaks at a podium with President Sheinbaum standing behind her
Ernestina Godoy, legal counsel to the president, said approved constitutional reforms are not subject to judicial revision. (Rogelio Morales/Cuartoscuro)

Last Thursday, she promulgated the so-called “constitutional supremacy” reform that prevents legal challenges against constitutional amendments. She could have used that reform to justify non-compliance with a Supreme Court ruling against the judicial reform.

Sheinbaum — who made her support for that reform clear before her landslide victory in the June 2 presidential election — argues that the election of judges is necessary to rid the judiciary of corruption and other ills such as nepotism.

Critics of the judicial reform argue that the election of judges will erode the independence of Mexico’s judiciary because it will come to be stacked with judges sympathetic to the ruling Morena party’s agenda, thus removing a vital check on executive power. Sheinbaum rejects the argument.

Reactions to the SCJN’s decision 

Ernestina Godoy, Sheinbaum’s top legal advisor, acknowledged on social media that the Supreme Court rejected “the project of unconstitutionality against the reform to the judicial power.”

“It is now a reality. Judges, magistrates and Supreme Court justices will be elected by popular vote starting next year,” she wrote on X.

Godoy also said that the election of judges is “an advance for democracy, justice and the participation of the people.”

The judicial reform “will benefit all of us,” she added.

Ricardo Monreal, Morena’s leader in the lower house of Congress, described the Supreme Court’s rejection of González’s proposal, as “very important.”

“… Law prevailed, the Constitution prevailed, the moderation and wisdom of some of the justices prevailed,” he said.

Senator Alejandro Moreno said that Justice Pérez "threw his name into the dustbin of history," and accused Morena of attempting to eliminate "counterweights" and the "opposition."
Senator Alejandro Moreno said that Justice Pérez “threw his name into the dustbin of history,” and accused Morena of attempting to eliminate “counterweights” and the “opposition.”(@alitomorenoc/X)

Senator Alejandro Moreno, national president of the Institutional Revolutionary Party (PRI), criticized Justice Pérez for what he called his “sudden change of position.”

In a post to X, he called the justice a “coward” and a “traitor to the people of Mexico.”

Pérez “threw his name into the dustbin of history,” Moreno added.

The PRI leader also took aim at Morena, accusing it of attempting to eliminate “counterweights” and the “opposition.”

PRI lawmakers “will continue demanding, by all means, more democracy, more justice and more freedom,” he wrote.

Senator Marko Cortés, president of the National Action Party, said on X that he “deeply” regretted the decision taken by the Supreme Court.

The court’s decision “threatens our democracy,” he wrote.

“We will not stop defending the division of powers, we will continue fighting for justice and equity,” Cortés added.

With reports from Aristegui Noticias, El Financiero, El Universal, La Jornada and El País

Is Mazatlán’s port prepared for the influx of Chinese vehicles to Mexico?

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MND Staff
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The news magazine Expansión reports that Mazatlán port officials hope to exceed 180,000 new vehicle imports by the end of 2024.
The news magazine Expansión reports that Mazatlán port officials hope to exceed 180,000 new vehicle imports by the end of 2024. (Puerto de Mazatlán/Facebook)

The massive influx of Chinese vehicles to Mexico in the past two years has increasingly saturated the country’s Pacific coast ports. 

Adjustments in logistical operations and substantial investments in infrastructure have helped normalize port services, but experts agree that more is needed. Some are eyeing the port of Mazatlán, Sinaloa, as a potential solution to the problem.

According to the newspaper El Financiero, nearly half of new imported vehicles coming into Mexico arrive from China.
According to the newspaper El Financiero, nearly half of new imported vehicles coming into Mexico are arriving from China. (@GobDMazatlan/X)

Until 2022, Mexico’s Gulf coast ports dominated the auto import business, with most vehicles arriving from Europe and Brazil. Now, according to the newspaper El Financiero, nearly half of new imported vehicles coming into the country’s ports arrive from China.

Arrivals at Lázaro Cárdenas (Michoacán), Mazatlán (Sinaloa) and Manzanillo (Colima) on Mexico’s west coast have surged, with Mazatlán becoming the main beneficiary.

Official data shows Lázaro Cárdenas as the No. 1 recipient of new auto imports, however, Mazatlán has climbed to No. 3 with arrivals rising from an annual average of roughly 25,000 to more than 130,000 auto imports through September of this year.

The news magazine Expansión reports that Mazatlán port officials hope to exceed 180,000 new vehicle imports by the end of 2024.

As a result of this import boom, investors are scrambling to upgrade facilities while also attending to the satellite industries, such as warehouses and storage yards, that are increasingly popping up around the Sinaloa resort city.

However, new challenges have arisen.

Chinese shippers have found it more cost-effective to ship the vehicles in containers (arranging them vertically) rather than on the traditional ROROs (roll on/roll off cargo ships). This means cranes are needed to offload the containers while a different apparatus is needed to remove each vehicle.

The increased arrivals also require more efficient operations, another factor in Mazatlán’s favor.

MG Motor signage
Founded in Great Britain in 1924, MG Motor was acquired by Chinese SAIC Motor Corp in 2007 and has made significant inroads in the car market in Mexico. (Shutterstock)

While Lázaro Cárdenas has better infrastructure, Chinese auto importers must compete with a larger cast of importers there. As Mazatlán’s port operations began to grow, Chinese automakers looking to expand in Mexico, such as MG Motor, saw benefits to arriving at the Sinaloa port.

“The advantage we have in unloading (vehicles) in Mazatlán is a more stable flow,” Josimar Hernández, manager of MG México, told Expansión. “We can unload some in Lázaro Cárdenas and others in Mazatlán, depending on inventory needs.”

Should Mazatlán become a specialized automotive port? Experts weigh in

As demand for Chinese vehicles in Mexico continues to rise — El Financiero reported that demand has risen from 9.6% in 2019 to 18% in 2023 — one industry expert thinks Mazatlán should consider becoming a specialized port.

Mario Veraldo, co-founder of logistics firm MTM Logix, believes converting Mazatlán into an automotive port could be a winning move. 

Without fully sacrificing operations to manage other types of merchandise, Veraldo told Expansión, reorienting the port would attract investments from and streamline cooperation with the entire supply chain in the automotive industry. 

Mauricio Ortiz, director of the port’s cargo services provider Terminal Marítima Mazatlán (TMAZ), told Expansión that such a reorientation is worth considering, especially because TMAZ views the automotive sector as a key segment of port operations.

New infrastructure investments in Sinaloa

As reported by Expansión, TMAZ is preparing investments of US $30 million to upgrade infrastructure and build external storage facilities at the port over the next five years. But Ortiz says he expects nearshoring volumes — particularly in the automotive sector — to increase during those five years.

“What we are seeing with the relocation of [Chinese] auto assembly plants indicates they have interest in providing for the Mexican and Latin American markets,” he said. “First they build up import volume, generating critical demand, and then they’ll make decisions related to factory installation.”

Several Chinese automakers have expressed interest in nearshoring manufacturing to Mexico, including BYD and MG, which will put additional pressure on parts volume at Mexico’s Pacific ports.

Meanwhile, less than 100 kilometers north of Mazatlán, plans to construct a port between the towns of Mármol and Dimas are moving forward after a prolonged pause.

The port, a joint venture of Mexico-based Caxxor Group and Texas-based Puerto Verde Holdings, is still in the studies and permitting stage. However, according to Sinaloa’s Economy Minister Javier Gaxiola Coppel, there is interest from U.S. investors in financing the initial stage of construction, which is estimated to require approximately $400 million.

In November, Gaxiola Coppel will travel again to Texas to continue negotiations, as reported by the news outlet Punto MX. There, he will meet with representatives of the governments of Durango, Coahuila, Chihuahua and Nuevo Leon regarding the “T-MEC corridor,” which seeks to improve logistics infrastructure between Mexico and the United States.

This new port — reported to have the potential to become “the most important in the country” — is viewed by state officials as complementary rather than a rival to Mazatlán. 

With reports from Expansión, Debate, El Siglo de Torreón and Portal Portuario

Templo Mayor archaeological site reopens in Mexico City featuring new exhibit

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MND Staff
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Part of a larger complex and city, the Templo Mayor (Great Temple) was at the center of the political and religious life of the Mexica (Aztec) society.
Part of a larger complex and city, the Templo Mayor (Great Temple) was at the center of the political and religious life of the Mexica (Aztec) society. (Daniel Augusto/Cuartoscuro)

The Templo Mayor archaeological zone, a sacred site in the heart of Mexico City containing remnants from the ancient metropolis of Tenochtitlán, has fully reopened to the public following extensive repairs to its roof, damaged by a rare hailstorm in 2021.

In conjunction with last week’s reopening, there is a new exhibition in the Templo Mayor Museum that includes more than 100 artifacts recently repatriated from the United States — among the more than 14,000 returned to Mexico during the six-year term of President Andrés Manuel López Obrador.

The restored roof of the Templo Mayor in Mexico City
The updated roof shields the oldest remnants of the site, including the shrines dedicated to war and sun god Huitzilopochtli and rain and fertility god Tlaloc. (Daniel Augusto/Cuartoscuro)

The items on display include stone, ceramic and organic materials that were recovered through an undercover operation by Homeland Security agents in the U.S., according to an Oct. 31 press release from Mexico’s National Institute of Anthropology and History (INAH).

The centerpiece is the “Ce ozomatli” (one monkey) tombstone which was donated to López Obrador last year. The round stone piece, with shell and turquoise inlays, includes the date “ce ozomatli,” indicating a predisposition for crafts and manual labor for those born under this date on the Nahua calendar.

The updated roof — a restoration milestone achieved under a joint project of INAH and the Mexico City government — now shields the oldest remnants of the site, including the shrines dedicated to war and sun god Huitzilopochtli and rain and fertility god Tlaloc, dating back to approximately 1390 AD.

Part of a larger complex and city, the Templo Mayor (Great Temple) was at the center of the political and religious life of the Mexica (Aztec) society. The temple itself consisted of four pyramids and the two shrines where Huitzilopochtli and Tlaloc were venerated with elaborate pageantry and sacrificial offerings.

It was destroyed by Spanish invaders during the Conquest and fall of Tenochtitlán in 1521, and a Catholic cathedral was built with many of the same stones next to where it once stood. A key archeological finding in 1978 helped shed light on the site and the Mexica civilization.

Today the museum includes more than 3,000 important artifacts of Mexica culture.

In conjunction with the site’s reopening, there is a new exhibition in the Templo Mayor Museum that includes more than 100 artifacts recently repatriated from the United States.
In conjunction with the site’s reopening, there is a new exhibition in the Templo Mayor Museum that includes more than 100 artifacts recently repatriated from the United States. (Daniel Augusto/Cuartoscuro)

The new roof installation required careful handling due to the site’s fragile relics and limited accessibility within Mexico City’s historic center.

“The site has not only improved physically, but has regained its relevance in the cultural narrative of the country and, above all, of Mexico City,” INAH Director Diego Prieto Hernández said in a press release. “The preservation of heritage is not limited to techniques and methods. It also involves understanding the meaning that these places have [within] the richness of our history.”

The Oct. 31 reopening also included a Day of the Dead altar dedicated to the states of Guerrero, Oaxaca, Puebla and Veracruz.

Officials said the museum — the third-most visited INAH museum in Mexico City with an average of more than 500,000 visits per year — anticipates a renewed wave of visitors. The exhibit of repatriated items is open daily except Mondays, and will run through February 2025.

With reports from Infobae, El País and La Jornada

Sheinbaum on Trump victory: ‘There is no reason for concern’

By
MND Staff
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Sheinbaum has not shared an official statement regarding Trump's victory, saying "It's prudent to wait" until vote counting has concluded in the United States.
Sheinbaum has not shared an official statement regarding Trump's victory, saying "It's prudent to wait" until vote counting has concluded in the United States. (Galo Cañas/Cuartoscuro)

Donald Trump’s victory in the United States presidential election on Tuesday is not a cause for concern for Mexicans in Mexico or the United States, President Claudia Sheinbaum said on Wednesday.

“To all Mexicans, there is no reason for concern. To our compatriots [in the U.S.], to their relatives here, to Mexican business people: there is no cause for concern,” Sheinbaum told reporters at her morning press conference.

Sheinbaum shared remarks on Trump's presidential victory in the United States
“We are a free, independent, sovereign country and there will be a good relationship with the United States. I’m sure about that,” Sheinbaum said. (Galo Cañas/Cuartoscuro)

Her reassurance came despite Trump’s pledge to carry out “the largest deportation operation in American history” — an undertaking that could affect millions of undocumented, and documented, Mexicans in the United States — and his threats to impose tariffs on Mexican exports.

Sheinbaum said she would wait for vote counting to conclude in all U.S. states before issuing an official government statement on the results of the United States elections.

“It’s prudent to wait,” she said.

After seeking to reassure Mexicans about the impact of a second Trump presidency, Sheinbaum declared that Mexico “always moves forward.”

“We are a free, independent, sovereign country and there will be a good relationship with the United States. I’m sure about that,” she said.

Trump, the Republican Party’s presidential candidate, will be sworn in as the United States’ 47th president on Jan. 20 for a four-year term that will conclude in early 2029, the penultimate year of Sheinbaum’s six-year term.

His victory over Democratic Party candidate and Vice President Kamala Harris had a significant impact on the Mexican peso, which depreciated to 21.79 on Wednesday morning before strengthening slightly.

On Monday, Trump pledged to “immediately” impose a 25% tariff on all Mexican exports to the United States if the government of Mexico doesn’t stop what he called an “onslaught” of criminals and drugs to the U.S.

“We’re being invaded by Mexico,” he said at a rally in North Carolina, adding that he would inform Sheinbaum of his tariff plan on “day one or sooner.”

In an address in Detroit in October, Trump said that “upon taking office,” he would “formally notify Mexico and Canada” of his “intention to invoke the six-year renegotiation provisions of the USMCA.”

“… I’m going to have a lot of fun,” he said in reference to his plan to renegotiate the three-way trade pact he signed during his first presidency.

It remains to be seen what changes to the USMCA Trump will seek to make and what impact his proposed protectionist policies will have on the trade relationship with Mexico, the world’s biggest exporter to the United States.

Sheinbaum has stressed that the USMCA benefits Mexico, the U.S. and Canada, and asserted that the three countries “complement” each other rather than “compete” with each other.

With regard to Trump’s most recent tariff threat, Sheinbaum asserted Tuesday that there is a lack of information in the United States about “the effort Mexico has made to reduce migration” to its northern neighbor.

With reports from Reforma and El Universal

Give thanks for Mexican food with pumpkin pie chimichangas

By
Stephen Randall
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A Thanksgiving classic moves into a new neighborhood in this pumpkin pie chimichanga recipe. (Element5 Digital/Unsplash)

Thanksgiving, the holiday where everyone enjoys a feast and every stomach takes on a challenge, is the perfect time to shake things up. In these hours of turkey carving and cranberry sauce arguments, there is room for a little Mexican twist on tradition. That’s where you come in, ready to amaze your family with pumpkin pie chimichangas. Not the usual slice of pie they’ve had forever, but a crispy, cinnamon-flavored, pumpkin fiesta.

The day starts with the kitchen filled with the smells of flour and spices, and the stove making its soft hissing sounds. You lay out the tortillas like blank canvases and spread the spiced pumpkin filling. A sugar and cinnamon mix is sprinkled like magic dust. You can’t help but grin, thinking of Aunt Myrtle, the keeper of all family recipes, gasping when she sees this unexpected treat.

Leftover Halloween pumpkins? Try using them in your chimichangas. (Foursquare)

The chimichangas fry in hot oil, turning golden brown and crispy. You sprinkle them with cinnamon sugar. The sweet smell drifts into the dining room, making everyone curious. ‘What’s that?’ someone asks, half excited, half unsure, as if the answer might change everything they know about their dessert reality.

You bring them out on a platter, the edges crunchy and inviting. Forks are picked up, careful bites are taken, and then— silence. That special quiet that only comes when people are truly surprised by how good something is.

“Wow,” Aunt Myrtle finally says, her eyes wide. “It’s…” She’s looking for the right word, one that sits between delight and new.

And you, knowing that the best Thanksgiving memories aren’t printed on place cards but told in stories around the table, nod. “Exactly.”

Pumpkin pie Chimichangas!? #thanksgiving #shorts

Pumpkin pie chimichangas

Ingredients

For the filling
  • 1 cup canned pumpkin puree
  • 1/2 cup cream cheese, softened
  • 1 cup chopped marshmallows
  • 1 tsp vanilla extract
  • 1/2 tsp ground cinnamon
  • 1/4 tsp ground nutmeg
  • Pinch of salt
For the chimichangas
  • 6 large flour tortillas
  • 1 egg, beaten (for sealing)
  • Vegetable oil for frying
For the topping
  • 1/2 cup granulated sugar
  • 1 tsp ground cinnamon
  • Whipped cream (optional)
  • Caramel sauce (optional)

Instructions

  1. Make the filling: In a medium bowl, mix the pumpkin puree, cream cheese, chopped marshmallows, vanilla extract, cinnamon, nutmeg and a pinch of salt until smooth and well combined.
  2. Assemble the chimichangas: Lay out a tortilla and spoon about 2-3 tablespoons of the pumpkin filling onto the center. Fold the sides of the tortilla in and then roll it up tightly like a burrito. Brush the edge with the beaten egg to seal the seam. Repeat for all tortillas.
  3. Fry the chimichangas: In a deep skillet or pot, heat about 2 inches of vegetable oil over medium heat until it reaches 350 F (175 C). Carefully place the chimichangas seam-side down into the oil. Fry for about 2-3 minutes per side or until golden brown and crispy. Remove and place on a paper towel-lined plate to drain excess oil.
  4. Coat with cinnamon sugar: While the chimichangas are still warm, mix the granulated sugar and ground cinnamon in a shallow dish. Roll each chimichanga in the cinnamon sugar until fully coated.
  5. Serve: Top with a dollop of whipped cream and a drizzle of caramel sauce if desired. Serve warm and let me know what you think!

Stephen Randall has lived in Mexico since 2018 by way of Kentucky, and before that, Germany. He’s an enthusiastic amateur chef who takes inspiration from many different cuisines, with favorites including Mexican and Mediterranean. His recipes can also be found on YouTube.

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