Mexico has been known for its successful car production for years now. Reports even say that Mexico has become an automotive manufacturing powerhouse even though all major car production manufacturers are based outside the said country. These days, despite facing production and trading threats by a politician, Mexico continues and proves to do its job in car manufacturing.
According to Journal Sentinel, American Auto Industry expands in Mexico. Strattec Security Group has broken ground on a $22 million factory specifically in Leon, Mexico. This means that it will be expanding its industrial park in central Mexico.
The country presents a growth opportunity for Strattec. It employs 3,940 worldwide about 3,400 of them in Mexico, sources say. In Leon, Strattec and its company partner -- ADAC Automotive of Grand Rapids Michigan -- observes the great demand from car companies' own move in expanding in Mexico.
Strattec said in a group of regulators that it is expecting net sales that will increase approximately $120 million within the next 2 years. If this trend develops, then it will expect even more down the road, it added. It sees this significant opportunity in Mexico because the UAW contracts were structured to allow passenger cars to be built there.
In addition, according to auto industry experts, a key factor in the shift is free trade deals. The car industry trend is a part of the ascension of the Mexican auto industry. It shifts south whether to Southern states in the United States or south of the border.
According to a web post via Left Lane, many automakers tended to shift small car production into Mexico since the country is viewed as an optimum market for car production. The important factor that drives these auto makers is the volatility in car segments.
Mexico's car sales are said to have increased 25 percent in April. A forecast was even published last month that by 2020, Mexico will account for one fourth of North American car and truck production, the source said.
