GlobalAutoTV
Click to watch Wim van Acker -
Click to watch Wim van Acker -
latin resources

Need an office in Mexico or Brazil? Office suites, meeting rooms, virtual offices, network access



free downloads
LATIN AMERICA: "Mexico signs eight new tax treaties" report

LATIN AMERICA: "Mexico signs eight new tax treaties" report. 5-page report by Ernst & Young.

proceed to download
eJournals




back to index backLATINtalk January,  2017


The move to assemble vehicles in Mexico is about more than low wages

Total per Vehicle Cost Advantages of Producing a Vehicle in Mexico for U.S. or European Markets.

Mexican automotive production has been a topic of recent debate. Since 2009, automakers—including BMW, Honda, Hyundai-Kia, Mazda, Nissan, Toyota, and VW/Audi—have announced eight new assembly plants investments in Mexico totaling $9 billion. What is missing from the conversation is that Mexico’s low labor costs may no longer be the prime driver of these investments; Mexico’s free trade agreements allow manufacturers to reach customers in countries representing 60 percent of the world’s GDP tariff-free.

CAR researchers estimate that making a vehicle in Mexico results in $600 to $700 lower labor costs per car than if the same vehicle were made in the United States.

Some of the benefit of lower labor costs in Mexico is offset by the higher worker attrition rates than found in U.S. assembly plants. However, labor cost savings only account for about half of the cost savings for vehicles that are then sold in the United States, and less than 15 percent of the total cost advantage for vehicles that are exported from Mexico to Europe for sale.

This comparison shows the cost savings for producing a $25,000 mid-size car in Mexico for sale in the United States, versus producing that same car in the United States.  It also shows the cost savings for producing the same mid-size car in Mexico for sale in Europe compared to producing it in United States to be sold in Europe.

To download 78-page report, please click here.

Source: CAR Group - GAI




previous page

go top
search our site


Loading

LATINtalk

Other articles from the same issue (January,  2017).

Manufacturing in Mexico a no-go for US automobile companies
play read on

How Trump’s Trade Policies Could Disrupt Mexico’s Growing Auto Sector
play read on

Weekly Chart: Mexico's Auto Industry
play read on

Automotive Sales, Production to Grow in Brazil in 2017
play read on

Autos/Trucks: Brazil Demand Comps Improving into Yearend (Jan. 2017)
play read on

Scuttled Ford Plant Has Mexico Fearing More Under Trump
play read on

Global Automotive: Cruisin'- Road Map to the Auto & Truck Market January 2017
play read on

Will Latin America Regain Prosperity in 2017?
play read on

How to Hire Employees in Mexico, a Quick Glance at Labor Contracts
play read on

In Latin America, Mexico The Only Real 'Loser' Under Trump
play read on

Mexico: Cost of electricity goes up following 20% increase in fuel
play read on

Managing the employment relationship in Mexico
play read on

What Could a U.S.-Mexico Partnership Look Like?
play read on

NAFTA 2017 CCN SPECIAL ReporT
play read on

Minimum wage increases nearly 10 percent in Mexico
play read on

Brazil Raises 2017 Monthly Minimum Wage to R$937
play read on

Mercosur and EU feel “2017 is a window of opportunity”, but can't find the path despite Brexit and Trump
play read on

Brazil Registers Record Judicial Recovery Filings in 2016
play read on

Brazil Tax News: Tax Regularization Payment Program
play read on

Expats highly rate health care in Mexico and Central America
play read on

Half the Argentine labor force make a monthly average of US$ 565, says Indec
play read on

Brazil tops rankings of countries where companies must pay bribes
play read on

Emerging markets: Mexican wave
play read on

IMF Cuts Economic Growth Forecast for Latin America in 2017
play read on

Brazil inflation at its lowest in years ends 2016 within the official target range
play read on

Brazil's unemployment rate reaches a record high of 11.9%: this means 12.1m out of a job
play read on

Argentina: More Flexibility to Exchange Control Market
play read on

Brazil lowers basic interest rate to 13 percent
play read on

The move to assemble vehicles in Mexico is about more than low wages
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120