Bajio: Investment HubBy Jorge Ramos Zwanziger | Tue, 12/15/2020 - 09:01
Foreign direct investment (FDI) is highly relevant to the Mexican automotive industry though it was affected by the COVID-19 pandemic and the uncertainty it created, as MBN reported. Despite this, there is still an opportunity for investment and the Bajio region offers optimism for many people in the sector.
First, San Luis Potosi has proven its capacity to be a resilient automotive hub, as MBN previously highlighted. “San Luis Potosi City is an emerging region in this regard,” Javier Gómez, Plant Manager at Eaton in San Luis Potosi, told MBN. He was positive that San Luis Potosi is a region of opportunity thanks to the state’s numerous advantages and the potential benefits of USMCA. “The state offers several advantages for a broad range of companies, such as short distances to industrial parks and affordable services; from a logistics perspective, public transportation provides easy routes for plant workers to get to their workplaces in a matter of minutes.”
In the state of Guanajuato, Volkswagen expressed interest in investing €$198 million (US$240.5 million) in its engine plant, reported SDPNoticias. This investment will allow the company to increase its production capacity by 75 percent. Volkswagen’s plants in Guanajuato currently employ about 10 percent of the company’s 13,000-strong workforce in Mexico.
Finally, Queretaro’s automotive industry has also received several investments, for instance in the e-commerce sector, as MBP reported. The US and Spain remain the state’s main contributors of FDI as between 1Q20 and 3Q20 the two countries invested around US$530.1 million, reports el Economista. Queretaro’s geographical position, being almost the center of the country, as well as its connectivity with other regions and strong internal market are reasons for which the state is attractive for FDI, Marco Antonio del Prete Tercero, Queretaro’s Secretary of Sustainable Development, told el Economista. The sectors that have the most potential in the state are automotive, aerospace, electric, sustainable technology and electronics, el Economista continues.
Two days ago, MBN reported on AWL Group’s interest to expand its operations in Queretaro through a MX$250 million (US$12.54 million) investment in its facilities in El Marques, Queretaro. Between 1Q15 and 3Q19, Queretaro has accumulated US$1.17 billion in FDI solely for auto parts manufacturing, which makes it a national contender for the automotive industry.