The Growing Role of Mexico in the North American Automotive Industry – Trends, Drivers and Forecasts

Mexican auto assembly capacity is projected to more than double between 2010 and 2020. This rapid growth is fuel by the investment infusion of $13.3 billion to move 3.3 million units of vehicle capacity from Japan, Germany, and South Korea to Mexico. This report highlights North American vehicle production trends, and demonstrates that while automakers and suppliers are attracted by Mexico’s low labor rates, there are many other factors behind Mexico’s North American automotive industry growth.

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