Automotive manufacturing in Mexico, as is the case with most of the country’s large scale production, has historically concentrated on the U.S.- Mexico border, and in the northern part of the country.
On the border Ciudad Juarez is an automotive manufacturing location of choice. The automotive industry in Juarez, along with electrical products sectors, provides almost 60% of all manufacturing jobs in the border city. Ciudad Juarez is home to industry noteworthies such as Delphi Automotive, Yazaki, Bosch, Valeo, Johnson Control and a myriad of other suppliers to the automotive industry.
Also, in the North of the country, a large automotive industry cluster is situated in Saltillo, in the State of Coahuila. The city is known for the high profile presence of U.S. Big Three automakers and their suppliers.
Currently, eight automotive OEM’s have a manufacturing presence in Mexico, with a combined 19 plants located in various parts of the country.
Along with access to Mexico’s 13 free trade agreements, the supply chain companies that operate in various locations to support automotive manufacturing are also benefits for OEMs.
The long time presence and most recent growth of automotive manufacturing in Mexico is the result of the lowest labor cost structure in North America, OEM venue diversification strategies, and a rapidly growing skilled workforce.