Grupo León: Rising Above Industry Challenges

The automotive sector has a distinct advantage over other industries in Mexico when it comes to attracting investment: fair competition, says Rolando Alaniz, Director of Grupo León. “Mexico's automotive industry gives investors and participating businesses peace of mind that money they invest is well spent. If a company wants to invest a peso in social responsibility, the environment, or anything else, it knows this peso is used well. This attracts more companies to the automotive industry in Mexico and abroad," he says.

Grupo León is a supplier that specializes in elaborate moldings, narrow fabrics, nets and meshes, fiberglass tapes, and printed and woven elastic labels for the automotive industry, having benefited from the sector’s dynamic rise over the past 25 years. Alaniz says Guanajuato is a case in point. "Investing in the automotive industry over the past 25 years has provided Guanajuato with a major financial windfall,” he says. “The investment has been so great that it has extended beyond and has contributed to other businesses, such as restaurants and construction firms, and it has increased the demand for various accessories that are vital to the sector, such as those manufactured by Grupo León.”

At the regional level, according to a statement from the Nuevo Leon Automotive Cluster, USMCA ratification is expected to reinforce the investment appeal of the automotive sector. Alaniz believes the new deal offers both a challenge and an opportunity. "If companies can successfully increase their inclusion of local materials from 62.5 percent to 75 percent, it would result in growth for the national industry. Therefore, it is important to be prepared for when the USMCA is enforced," Alaniz says. Furthermore, he believes that the time is short for companies to pass this challenge successfully. "Companies have about three years to meet this challenge and their achievement will depend on growing and strengthening their position as allies to Mexico's Tier 1 businesses and OEMs," he says.