Nuevo Leon Boosts Mexico’s Automotive Industry

Mexico’s automotive sector is on the move with new projects and investments for 2023. Chinese company Noah Itech started the construction of its first assembly plant in Nuevo Leon thanks to a US$100 million investment; the plant is expected to generate 100 new positions. Moreover, the state is also building a Center for Industrial Innovation in the Mobility of the Future that will be finished by 2025. 

In other news, after two failed negotiations, Audi México and worker representatives avoided a strike after agreeing on a 9.4 percent salary increase for 2023. This is the biggest wage increase in the history of the Mexican automotive sector. 

Ready? This is the Week in Automotive!

Stellantis to Build US Firm Archer’s Air Taxi
US automaker Stellantis and Archer Aviation announced plans to manufacture the latter’s electric aircraft, Midnight. The announcement is the result of their desire to significantly expand their partnership through a US$150 million equity capital investment for the aviation company. 

“Deepening our partnership with Archer as a strategic investor with plans for growing our shareholding demonstrates how Stellantis is pushing the boundaries to provide sustainable freedom of mobility, from the road to the sky. Supporting Archer with our manufacturing expertise is another example of how Stellantis will lead the way the world moves,” said Carlos Tavares, CEO, Stellantis.

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Increase in EV Prices Threatens Electromobility: Stellantis CEO
During the Consumer Electronic Show (CES), Tavares warned about the effects of the increasing price of EVs as a result of high inflation and lack of affordability policies and packages. He highlighted that automakers must search ways to reduce EV prices, as these vehicles still cost about 40 percent more that similar Internal Combustion Engine (ICE) models.

Check out the full statements.

Nuevo Leon Will Open Mexico’s first Center for Future Mobility
The state keeps investing in the future of the automotive industry. Nuevo Leon Automotive Cluster’s Driven Innovation Center is creating the Center for Industrial Innovation in the Mobility of the Future that aims to support the next generation of mobility solutions. The center will be ready by 2025.

“The idea is to have workshop areas that enable us to manufacture most of the prototypes that we have planned for this center, as well as traditional mechanical testing laboratories for: durability, fatigue, mechanical stress and some environmental exposure and thermal cameras, in addition to a prototype assembly line,” Ricardo Apaez, General Director, Driven Center.
Find out all the details here.
 

Noah Itech Invests US$100 Million in Nuevo León

The Chinese company announced the start of its operations in Mexico with a US$100 million investment to build a manufacturing plant in Nuevo Leon, which will later create 100 new jobs .

"This announcement serves me for three reasons: one, to confirm that [Noah Itech] invested in the best state to invest in; second, to commit to carry out all the necessary public works to have the best infrastructure; and third, to show off Nuevo Leon to the whole world," said Samuel García, Governor of Nuevo Leon.
Read more about the story here. 

Tesla Cuts Prices in China, Japan, South Korea and Australia
The giant EV manufacturer recently cut prices of its best-selling models in China, Japan, South Korea and Australia. This is the second time Tesla lowers the prices of its vehicles in China in less than three months.

After the announcement, the automaker received a list of demands from an assembled group of Tesla owners in China who complained of the “abrupt” price cuts. This is the first major move made by Tesla since the company named Tom Zhu as its lead executive in China and Asia after it failed to achieve its 2022 delivery target.

Check out the story here.
 

Audi Workers Forestall Strike; Agree to 9.4 Percent Pay Rise

After months of negotiations, the German automaker and worker representatives agreed to a 9.4 percent salary increase for this year. The acceptance of this deal averted a strike in the assembly plant in Puebla.

“Talks were held between automaker Audi and the Independent Union of Audi Workers of Mexico (SITAUDI) at the Federal Center for Conciliation and Labor Registration, managing to sign a 9.4 percent direct salary increase for this year. This prevented the outbreak of a strike scheduled for this Wednesday, Jan. 11 at the plant located in San Jose Chiapa, Puebla, where over 5,600 workers collaborate,” reads the government’s press release.

Read the latest update here.