As the automotive industry recovers from the pandemic, the Mexican sector continues attracting foreign direct investment (FDI). This week, Ford announced its Global Technology and Business Center (GTBC) through a three-minute video on social media. Located in the State of Mexico, the GTBC represented an investment of US$260 million. It is the largest engineering center in Mexico and can host up to 9,000 individuals.
Meanwhile, Volkswagen and Continental announced investments that add up to almost US$1 billion in Puebla and Guanajuato, respectively. Earlier this year, Nissan announced it will invest US$700 million in Mexico during the next three years.
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Public Policies Are Essential to Attract FDI: Morgan Stanley
To take advantage of their privileged geographical position, Mexico and the US should implement policies that encourage FDI, reports Morgan Stanley. The firm highlighted that the 2024 Mexican elections will be key to meet the levels of FDI the country expects, since public policies play a critical role in attracting it: “The direction of public policies should be oriented to provide security for investments, strengthen the rule of law, provide reliability to infrastructure and support the skills of human capital.”
Rules of Origin Dispute Expected to Favor Mexico, Canada: AMIA
The results of the USMCA dispute panel regarding rules of origin will be announced on Nov. 11, 2022. Key players in Mexico's automotive sector, including the National Auto Parts Industry (INA) and the Mexican Association of the Automotive Industry (AMIA), trust that the resolution will favor the stand backed by both Mexico and Canada. If the panel rules in their favor, the US will be forced to start the new rule of origin calculations in 45 days.
Volkswagen to Invest US$763.5 Million in Puebla
Volkswagen México announced a US$763.5 million investment to build a new paint shop in Puebla, reaffirming the importance of the region for the company. The plant is expected to be finished by the end of 2023 and seeks to modernize the application of paint with a process that will eliminate the need for gas consumption, reducing emissions while also fully operating with renewable energy.
Continental to Invest US$209 Million in Guanajuato
Continental will invest US$209.48 million to expand its assembly plant in Guanajuato and build a new manufacturing unit, announced Diego Sinhue Rodríguez, Governor of Guanajuato. The German mobility company expects to finish both projects by 1Q23, which will create over 1,550 jobs within the next three years.