Mexico’s auto industry turns the corner, acceleratesMexico’s auto industry turns the corner, accelerates

After a tough 2008-2009, Mexico's automotive industry has rebounded nicely, setting new production and export records. According to the Mexican Automotive Industry Assn. (AMIA), production of cars and light trucks in Mexico climbed 15% to a record 998,757 units in the first five months of 2011, compared with the same period in 2010.

The Association credits the surge to a jump in exports to Latin America and the U.S. Total exports grew 17% to 832,000 units from January through May. In May, output jumped 19% year-over-year to 213,000 vehicles, the AMIA reports. Exports grew 21% to 177,000 units. Both were records for the month.

Domestic auto sales rose 11% to 68,600 units in May, according to Mexico's auto dealer group, AMDA. Sales increased 11% to 344,800 units in the first five months of this year, and the AMDA predicts full-year sales of 890,000 vehicles in Mexico. AMIA President Eduardo Solis noted that the local auto industry "has more than recovered from the 2008-2009 economic crisis" and is "setting new records for production and exports."

Automotive suppliers are expanding their Mexican operations to keep pace with demand. In the Saltillo-Ramos Arizpe, Coahuila region, Delphi is investing $20 million in the first stage of a new 180,000-sq-ft facility in the Santa Maria Industrial Park in Ramos Arizpe. Delphi is expecting to create 700 new jobs. Leon Plastics (auto interiors) expanded its facility in the Saltillo-Ramos Arizpe Industrial Park, as did Magna, located in the Santa Maria Industrial Park, all announced in the March/April issue of MexicoNow.

Mexico ranks as the 10th largest vehicle producer in the world, according to the U.S. Commercial Service, accounting for 17.6% of Mexico's manufacturing sector and 3% of national GDP. There are currently seven manufacturers in Mexico producing 40 brands in 20 manufacturing plants, with the country producing around 2 million cars annually. Fully 79% of production is for export.