The auto industry has certainly gone through hard times these past few years, and now it is trying to rebuild itself. Part of the comeback is restructuring the companies, and finding ways to cut costs. This is often done by offshoring the manufacturing portion to countries that demand lower wages. Mexico is one of the countries that will see the benefits of this move in the next few years.
Companies like Chrysler, GM and Ford are investing a considerable amount of money in their plants in Mexico. Mexico will receive lots of new jobs and opportunities with these investments. This will also be a win for the auto companies because outsourcing brings lower priced goods and services and helps them focus on core functions. However, workers in Canada and the United States may be suffering because of it. Mexico’s share of the North American auto industry is on the rise. That also means that the U.S. and Canadian shares are on the decline.
The increase in investments being made in Mexico will also help the sales of cars in South America and Latin America because of its location. Since Mexico also has connections with countries north and south of it so it can act as a bridge. This will lead to an increase in exports to these countries and will hopefully lead to loyal customers.