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Strong yen driving Japanese automakers to Mexico

Japanese automaker Nissan has announced that it's gradually moving its manufacturing out of Japan to more competitive locations such as Thailand, China and Mexico. As reported in Bloomberg, Nissan Motor Co. Chief Executive Officer Carlos Ghosn says, "The yen is a huge handicap for exporters from Japan." Echoing him, Toyota President Akio Toyoda recently proclaimed that Japan's car industry will "collapse" if the yen continues to gain.

Once again, Mexico is proving to be a "no brainer" when it comes to automotive manufacturing for the North American market — with automakers from all corners of the globe setting up shop in the country, including: Chrysler, Ford, GM, Honda, Nissan, WV and Toyota, as well as heavy truck manufacturers Dina, Navistar, Kenworth, Daimler, Volvo, Isuzu and Scania.

As a result, Central Mexico is also fast becoming a hub for auto parts manufacturers, of which there are over 1,100 in the country, including D&M Premium Sound Solutions, IEC Holden Inc., Pacific Insight Electronics Corp and Westbrook Manufacturing Inc. This is all thanks to the Altiplano's close proximity to the major automotive OEMs in the in Bajio area, a strong supply base in Fresnillo and easy transport routes to major markets in the US and Canada. Mexico exports 80% of its vehicles to the U.S. In fact, 11 out of every 100 autos sold in the U.S. are manufactured in Mexico.

Published or Updated on: December 19, 2011
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