Mexico now cheaper for carmaking than much of China


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    Mexico now cheaper for carmaking than much of China

    Post by patpending on Mon Mar 03, 2014 10:34 am

    From USA Today as highlighted by CCT:

    Mexico is on track to overtake Japan and Canada and become the United States' No. 1 source of imported cars by the end of next year, part of a national manufacturing boom that has turned the auto industry into a bigger source of dollars than money sent home by migrants....

    When NAFTA was signed two decades ago, Mexico produced 6% of the cars built in North America. It now provides 19%. Total Mexican car production has risen 39% from 2007, to nearly 3 million cars a year. The total value of Mexico's car exports surged from $40 billion to $70.6 billion over that span....

    Manufacturing in Mexico is now cheaper than in many places in China, though the vast majority of the cars and trucks made in North America are still produced in the U.S. for domestic consumption and export to other countries.

    The cost of oil and the extra unproductive working capital required for the journey across the world of the MGs (let alone the inflexibility of a pipeline measured in weeks) surely suggest that MG should copy their near neighbours and do some re-shoring!

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