The historic results are mostly due to the strengthening in the internal consumption and exploring of new markets


In 2017 the Mexican automotive Industry reached record figures regarding production and automobiles exporting thanks to the increase of the national manufacturing, according with the Mexican Automotive Industry Association (AMIA, by its Spanish initials) as last year were manufactured 3,773,569 units, what meant 8.9 % more than last year, while a total of 3,102,604 vehicles were sent to other nations.

In this last sector, Coahuila has consolidated as the leader exporter state thanks to its two assemblers (FIAT Chrysler and General Motors) and to the competitive advantages the state offers to the foreign market.

On his part, Rolf Habben Jansen, Global CEO of the Dutch shipping company Hapag-Lloyd, declared that “Mexican manufacturing is recognized by its quality and competitive cost, in addition that Mexico is an important logistic point worldwide, as it allows a direct exit to the Asia and European continents, in addition of the already known trade relation with the United States.”

OVERCOMING ADVERSITIES AND EXPECTATIONS

Contrary to forecasts at the beginning of 2017, for Jose Luis Hotema, president of the Automotive Cluster Laguna, the results are incredibly favorable.

“Many expectations were that the automotive industry went down and on the contrary, we know that if we could keep ourselves in a difficult time, this indicates that we will be strong in the future with or without NAFTA, because Mexico is important for the United States,” said for Mexico Industry.

To open doors in both the external and domestic markets was one of the successes to which the historical production and export figures can be attributed.

“Even this helped us grow exports by opening new markets to Europe and South America, where Mexico almost did not send products or even had a presence.”

“And more importantly, the Mexican industry has been strengthened, whether local or society with foreign capital, the domestic market has set the pace to move forward that is why we are stronger than before. It is a great opportunity to continue generating and betting on the development of the national industry,” he explained.

“Hardly will find a country with the response capacity Mexico has to adversity, it seems that adversities have helped Mexico,” said the president of the Automotive Cluster Laguna.

 

GROWING INDUSTRY

The Automotive Cluster Laguna has 27 member companies that usually develop 30,000 direct jobs in the automotive and auto-parts sector and 90,000 indirect jobs.

Regarding the aforementioned, Hotema said that the automotive industry will continue to grow in Coahuila and announced that this year they intend to trigger industrial parks such as the Centenario in Torreon and others in the Laguna region of Durango.

“Coahuila is a fundamental part for the automotive sector and now we are looking for the Comarca Lagunera (including Durango) to have the same significance,” he concluded.

 

SALTILLO LEADS WITH RAM 2500

One of the vehicles that contributed most to these historic levels is the RAM 2500, assembled in Saltillo, Coahuila, since it was the model most shipped from Mexico during the past year.

The RAM 2500, manufactured by Fiat Chrysler Automobile (FCA,) in Derramadero, exported a total of 258,146 units, being the vehicle assembled in Mexico with the highest demand abroad, explained Eduardo Solis.

Likewise, it was announced that this figure represents a 2.8 % increase in exports for the Dodge pickup vehicle compared to the registered in 2016.

The president of the Mexican Automotive Industry Association mentioned that there are five models that dominate the national exports of 38 that are currently assembled in the country.

It is about the RAM 2500 which went out of the Derramadero complex in Saltillo, leading with 258,146 units; followed by the Chevrolet Silverado 2500, manufactured in Silao, Guanajuato, which produced 251,450 units; while the Nissan Sentra manufactured 218,847 cars in Aguascalientes; the top 5 is completed by the Volkswagen Jetta, which produced 152,055 units in Puebla, as well as the Jeep Compass, which in its first year of production assembled 141,370 vehicles, in Toluca.

“These five models represent 35.9 % of the total number of vehicles that are assembled in Mexico for other markets, mainly for the United States, destination that represents 75 % of total national exports,” according to Solis.

The main destinations of RAM 2500, model dedicated to freight movement and small businesses, are the United States and Canada, since both countries account for 99 % of the exports.

 

A NEW PICK UP WILL BE ARRIVING

Under the North American International Auto Show (NAIAS) of Detroit, Sergio Marchionne, general director of Fiat Chrysler Automobiles (FCA), announced to the media that the new vehicle will be manufactured at its Derramadero plant in Saltillo, it will be a Pick Up truck.

The announcement came after the company revealed that it will move the production of the RAM Heavy Duty in 2020 to the new plant located in Warren, Michigan, United States.

“I believe that in this rearrangement what we are doing is a win-win for all.  This was settled a year ago and it is being announced because this reindustrialization, part of our productive plant in Mexico is completed,” the directive said.

Marchionne cleared that the medium pickups are the largest market offering this kind of vehicles, what could mean a considerable increase in the production volume.

“If today you put together the small, medium and big pickups market, the medium ones are two thirds of the production, is by far the largest market, which is replicated in Latin America and Asia.  In Europe is between zero and nothing, the pickups market is very little, that is why it is really important to have Mexico to supply a global product,” he explained.

If that was not enough, he detailed that the arrival of the pickup will represent a new investment for the FCA complex in Derramadero, where it is observed to keep the local suppliers that currently collaborate to produce the RAM Heavy Duty.

He explained that the unit, which still does not have a name, will be a pickup competing in the market with rivals such as the Ford Ranger or the Toyota Hilux, and that 90 % will be under the RAM brand and 10 % with FIAT.  “The fact that the model will not change that much relief suppliers,” he concluded.

It is important to remember that RAM 2500, from the Heavy Duty line, produced in Derramadero, represented in 2017 the more exported vehicle made in Mexico, with a total of 258,146 units sent abroad, being the United States and Canada the biggest market.