The Interoceanic Corridor Could House Automotive OEMs

The Mexican Government has met with some of the biggest automotive OEMs, such as Toyota and General Motors (GM), to discuss opportunities to invest in the Interoceanic Corridor (IC), according to Raquel Buenrostro, Minister of Economy. So far none of the companies involved has confirmed investment plans in the area.

The IC is a flagship project of President López Obrador’s government. It aims to connect the Gulf of Mexico with the Pacific through a railway link bordered by industrial parks. The project’s main goal is to attract businesses to the less developed states of southern Mexico, rather than concentrating them in the central and northern parts of the country. Buenrostro pointed out that this region has several advantages, including a good water supply and a wide availability of clean energy.

"We made several approaches to [the automotive] sector, including the auto parts industry and some others related to steel and metallurgical parts that are complementary to the development of electromobility," said Buenrostro during an investors meeting in New York.

GM and Toyota confirmed they had had talks with Mexican officials regarding this project, but denied having any investment plans to announce yet. "We have had several meetings with Minister Buenrostro and her team to review investment opportunities in the IC. Moreover, we have shared lists of potential new suppliers that could arrive in Mexico so that they can contact them and show them the opportunities of the corridor,” says Teresa Cid, Mexico’s Spokesperson, GM. 

Toyota released a statement confirming the participation of its local unit in meetings organized by the government to learn more about the project, but said it did not discuss investment plans. 

Odracir Barquera, Director General, Mexican Association of the Automotive Industry (AMIA), says that the automotive industry would be willing to install production plants in the Isthmus region of Tehuantepec, if they are offered good operational conditions and guarantees for their investments. "Automotive OEMs are mainly concentrated in the Bajio and northern regions due to its developed infrastructure and human capital. For the companies to invest in the south, they need these same strategic conditions,” says Barquera. 

Julio Galván, Economic Studies Manager, National Auto Parts Industry (INA), highlighted that the region’s water and clean energy availability is an advantage that could help expand the production of the auto parts industry in Mexico. "At INA, we believe that the abundance of natural resources will increase the industry’s dynamism, especially because of all the issues regarding water scarcity in the north of the country,” says Galván.