Mexico becoming export hub for Detroit 3, Nissan and VW

Exports of 1.86 million units in 2010, of which 1.63 million were exported to the Americas

2011/03/15

Summary

 Mexican export volume expanded to 1.86 million units mostly to the largest importer US in 2010, up by 52% over the previous year. Accordingly, production volume increased to 2.26 million units, up by 50%.

 Labor cost in Mexico is said to be one tenth of that in the US. While a ratio of small cars to total sales in North America gets larger, Detroit 3, Nissan and VW plan to strengthen Mexico as a center of production for the Americas.

 GM plans to add new model vehicles, four-cylinder and eight-cylinder engines to its production. Ford began to produce Dual Clutch Transmission and the Fiesta, respectively, in March and May 2010. Chrysler started production of the Fiat 500 in December.

 Nissan plans to increase production capacity of the two plants in Mexico to 700 K units, and produce up to 300 K units of the new March/Micra-based models per year. VW will expand the Puebla Assembly Plant and built a new engine plant in Silao. In addition, VW's Chattanooga Plant in Tennessee, USA, will begin production in the latter half of 2011. These are VW's strategic movements to sell one million units in the US in 2018.