Andrés Lerch
Roundtable
Andrés Lerch
Andrés Lerch
Advisory Partner and Leader of the Operations Transformation Area
EY Mexico’s Automotive Center

We are ready to embrace new and greener automotive technologies. Unfortunately, Mexico’s infrastructure is not prepared. Other countries are already experiencing a technological transformation as gasoline and diesel consumption declines while methanol, electricity and hybrid alternatives grow. In advanced economies, it will take 10 to 12 years for these new technologies to become a key part of their industry but in Mexico it will take the same time for these technologies to start permeating the market. There are benefits in owning an electric or hybrid car, including no ownership tax and less gasoline expenditure, but the initial investment to acquire one of these models is still too high. If the government does not offer fiscal benefits for leasing eco-friendly solutions, this market will not grow. Limiting deductibility in leasing is frankly retrograde and Mexico is the only country in the world with such regulations.

Electrification is a growing trend in the global automotive industry but it is not the only available option to reduce the environmental impact.
Analysis
Mexico is now back on a growing track fueled by longstanding players and the arrival of newcomer Kia.
Mario Rodríguez
Roundtable
Mario Rodríguez
CEO
Arbomex

Mexico has developed complete production lines from Tier 1 to Tier 2 and 3 suppliers, moving away from its original maquila idea. Engines, seats, control panels and many other components can be completely manufactured in the country from the tiniest wire to its connectivity features. Most OEMs have based their strategies on quality, costs and logistic advantages. Quality has to be the main driver for the local supply chain, along with the possibility of being a benchmark in terms of costs. Communication and integration are also vital for any client throughout all levels of the production, design and logistics process. Advanced manufacturing operations must also be a priority. Software and basic engineering processes are still carried in the companies’ headquarters. However, each day more and more universities collaborate with companies to encourage innovation and entrepreneurship among students.

What should be the priorities while building Mexico’s supplier base?
EY Mexico’s Automotive Center
View from the Top
Andrés Lerch
Advisory Partner and Leader of the Operations Transformation Area
EY Mexico’s Automotive Center
EY (formerly Ernst & Young) is a globally integrated professional services organization.
MAS 2016
News Article
Mexico Automotive Summit 2016: Investment and Supply Chain Development panel highlights
Andrés Lerch
View from the Top
Andrés Lerch
Partner, Advisory Services / Performance Improvement
Ernst & Young México
Mexico may not be ready for a high percentage of electric vehicles but neither are many other countries.
The domestic new vehicle market is presenting more encouraging figures than previous years
Analysis
The auto industry in Mexico continued its run of favorable news in the first half of 2016, with new OEMs coming in.
MAS 2015
News Article
Mexico Automotive Summit 2015: Changing Nature of Aftermarket and Aftersales Services panel highlights
Andrés Lerch
View from the Top
Andrés Lerch
Partner, Advisory Services / Performance Improvement
Ernst & Young
Due to a lack of the necessary capacity to serve Tier 1 clients, Tier 3 companies are starting to work together to improve efficiency
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