Why Mexico? Why USA? Why Canada?

Why Mexico?


  • 8th largest vehicle producer in the world
  • Most competitive country in terms of total landed costs to the US in 2012. Lower than: 21% US, 11% China and 3% India.
  • More than 115,000 engineers graduate every year.
  • Trade Agreements with 44 countries.
  • Opportunities for manufacturing: 71% of imported auto parts.
  • Responsible fiscal and monetary policies, currency advantages.
  • Champions.
  • Proximity to markets. To the U.S. market and to growing Latin American market.
  • Low-cost labor. Wages for Mexican assembly-line workers begin at $40 a day.
  • Skilled workers. High productivity of Mexican employees. More than 115,000 engineers graduate every year. The workmanship of Mexican vehicles compared well with its Japan-made cars and they cost less to build.
  • Operational efficiency. Nissan plants in Mexico operate more hours a year than other Nissan plants world-wide. Ags operates 23 hrs/day, six days a week.
  • Small cars manufacturing capability. Global shift toward smaller, cheaper cars has put pressure on profit margins. Car mileage regulation. Targets of nearly 55 miles per gallon by 2025.
  • Currency advantages. Protect VW against the dollar/euro unfavorable currency fluctuations.



  • The automotive industry in Mexico accounts for:
  • 3rd investment destination in the automotive sector in the world, with 5.6 billion dollars received during 2007-2010.
  • Number 1 supplier of auto parts to U.S. in 2011.
  • 5th largest light vehicle exporter in the world in 2011.
        • 23% of Mexican total exports.
        • 4% of the GDP
        • 20% of the manufacturing GDP
        • 6% of Direct Foreign Investment
  • Mexico is now exporting vehicles to China, and even helped Japan keep up with orders after last year’s tsunami.
  • Out of the 28 auto companies listed in the Fortune 500 ranking, 27 have operations in Mexico.
  • 90 of the 100 leading auto parts companies in the world have production in Mexico.
  • One in 10 cars sold last year in the U.S. was made in Mexico.
  • New taxi in New York’s fleet—made by Nissan in Mexico.



  • Light vehicle production value $1,221,834 Million Dollars (Md)1
  • Global heavy vehicle production value $211,510 (md)1
  • Global producer of light vehicles5 2.88 million vehicles
  • Exporter of light vehicles6 2.35 million vehicles
  • Mexico’s global ranking as heavy vehicle producer7 138,078 vehicles
  • Exporter of heavy vehicles7 104,155 vehicles
  • Share of the automotive industry as % of the manufacturing GDP 2011 9 20%
  • Share of the automotive industry in total exports6 27%
  • Number of jobs created9 62,196 Jobs
  • Mexico’s global ranking as vehicle manufacture4 3.02 million vehicles


Why USA-Michigan?

Michigan produces more cars and trucks than any other state. It’s number one in employment of industrial and mechanical engineers and is home to the headquarters of 61 of the top 100 automotive suppliers

  • Michigan produces 23% of the U.S. vehicles
  • Is home of 61 of the top 100 North American Automotive suppliers
  • Michigan leads U.S. powertrain production with 31 percent of engine and 26 percent of transmission output
  • Home to 12 auto assembly plants along with 35 parts and components plants
  • Michigan’s 375 research and development centers represent more than 70% of U.S. automotive R&D spending
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  • The United States will remain among the most lucrative vehicle markets in the world based on higher profit margins in larger vehicle segments
  • More than ½ of Michigan’s vehicle output will be based on global platforms by 2018
  • Leadership in research and development
  • Michigan is the backbone of innovation in North America, provides access to one of the largest concentrations of industrial R&D world, a wide range of talent in specialized technology and a university research system first class which keep Michigan at the forefront of progress and discovery.
  • Is home to more than 370 R&D and technology centers with vehicles which span research, development or generation of products and facilities for eight of the 10 largest OEMs.
  • Mexico is the second largest foreign trade partner of Michigan.
  • University research corridor of Michigan (including Michigan State University, University of Michigan and Wayne State University) is among the best nationally known rivals and innovation clusters such as Silicon Valley and Research Triangle

    Source: Michigan Economic Development Corporation (MEDC)


Why Canada- Ontario Region?

The Canadian automotive industry produces light duty vehicles — cars, vans, pickup trucks; heavy duty vehicles—trucks, transit buses, school buses, military vehicles; and a wide range of parts, components, and systems used in vehicles of this nature. To complement its manufacturing activities, the industry boasts a well-developed vehicle dealer network, plus an aftermarket organization which has grown into a world-class distribution system and service provider.

The Canadian automotive industry is: 

  • Integrated into NAFTA (i.e. Canada, U.S., Mexico)
  • Globally competitive
  • The eighth largest in the world with positive trade balance
  • A major contributor to the Canadian economy, employing over half a million people

Ontario is the only subnational jurisdiction in the world with the top 5 auto assemblers. The region offers unparalleled access to the North American market, with 15 road, rail and marine border crossings to the U.S. and five international airports.

Every day, over $766 million in trade takes place between Ontario and the U.S. (That’s over $280 billion in goods each year.) Ontario is next door to the eight U.S. states bordering the Great Lakes: New York, Pennsylvania, Ohio, Michigan, Minnesota, Illinois, Indiana and Ohio. Ontario is closer to the heart of the U.S. auto manufacturing than many parts of the U.S.

Who is in Ontario?

  • Chrysler, Ford, GM, Honda, and Toyota run 12 plants in Ontario (making us the only province or state in North America with five OEMs).
  • Tier 1’s such asABC Group, IMS, Magna, Linamar, Martinrea, Valiant and The Woodbridge Group
  • Hitachi Construction Truck Manufacturing builds its multimillion-dollar mining trucks for the North American and South American markets
  • Hino, a division of Toyota, manufactures trucks in Woodstock, Ontario.
  • Also home to 350+ auto parts manufacturers and 500 tool, die and mould makers working to develop manufacturing solutions.