Industry 4.0: China to Challenge Germany in Race for Industry 4.0 Adoption

China Still Lucrative for Businesses Despite the Rising Wage Rates

China's Luxury Market Set for Steady Performance Amid Unfavourable Market Environment

Making sense of the Global Market, Euromonitor International Ltd.

Yu Mitsuhashi

Making sense of the Global Market

Euromonitor International Ltd.

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Thematic (Sector/Industry)

United states Commercial and professional services / Thematic (Sector/Industry)

<p>As Donald Trump tries to revive an American manufacturing base, automotive production in Mexico has come under scrutiny. Many global automakers already operate plants in Mexico, attracted by its strong economy and stable government, but uncertainty surrounding trade deals such as NAFTA – the North American Free Trade Agreement – have called into question the long-term value of these investments. Given uncertainty surrounding NAFTA and its current reliance on the United States as an export destination, Mexico’s future lies in becoming a global export hub for premium automakers’ entry-level vehicles and as a regional base for automakers expecting strong growth in Latin America, particularly Chinese brands. These two areas will allow Mexico to diversify its export base and hedge against uncertainty in the United States.</p>

As Donald Trump tries to revive an American manufacturing base, automotive production in Mexico has come under scrutiny. Many global automakers already operate plants in Mexico, attracted by its strong economy and stable government, but uncertainty surrounding trade deals such as NAFTA – the North American Free Trade Agreement – have called into question the long-term value of these investments. Given uncertainty surrounding NAFTA and its current reliance on the United States as an export destination, Mexico’s future lies in becoming a global export hub for premium automakers’ entry-level vehicles and as a regional base for automakers expecting strong growth in Latin America, particularly Chinese brands. These two areas will allow Mexico to diversify its export base and hedge against uncertainty in the United States.

Despite the United States Giving the Cold Shoulder, Manufacturing Cars in Mexico Makes Sense