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

Table of contents

Summary
Mexico's production (2.26 million units) and export (1.86 million units) refresh records in 2010
Vehicles made in Mexico increased to 19.3% of total production in North America in 2010
GM unveils plans to produce new model vehicles, four-cylinder and eight-cylinder engines
Ford starts production of 6-speed Dual Clutch Transmission (DCT) and the Fiesta
Chrysler: production of Fiat 500 starts in December 2010
VW to invest 2 billion dollars in Mexico between 2008 and 2013
Nissan plans to produce the Micra Series in Mexico
News report says Mazda's new plant to be built in Mexico
Mexico: Production and sales volume by OEM

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.

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