Auto sector commits investments for US$5 billion from 2017 to 2020, says Bancomext
Independently of the recent renegotiations of the North American Free Trade Agreement (NAFTA), now known as the United States-Mexico-Canada Agreement, the national automotive sector has committed investments of US$5 billion for the period of 2017 to 2020.
These investments will be made by both vehicle producers and the rest of the companies in the production chain, said Eduardo Muñiz, director of Aerospace, Automotive and Logistics Financing of the National Bank of Foreign Trade (Bancomext).
He added that there are other investments for the logistics and aerospace sectors where the latter has grown to double digits in recent years, but is less than the automotive industry because this sector started operations only in 2005.
An example of this is General Electric (GE) in the aerospace branch, while in the automotive one there is Daimler and Ford who are working on developing electric vehicles, of which one of them will take place in the plant of Cuautitlán, in the state of Mexico.
Muñiz explained that although the automotive sector has grown in production and exports with record figures, the reality is that sales of new vehicles for the domestic market have stopped doing so.
“These renegotiations were a good challenge for Mexico to turn to see other markets and diversify exports, and to depend less on traditional markets. In other words, the basis of the other trade agreements was achieved,” he said.