Mexico: Automotive Industry Mobilizes after Trump Threats

That company will invest 1.4 billion pesos (about 70 million dollars) and will generate in its first stage a thousand direct jobs and about 4 thousand 500 indirect ones in the state of Hidalgo.

The plant will have an assembly capacity of 40 thousand vehicles per year aiming to reach 10 thousand units annually by 2021.

The announcement was made by Economy Secretary Ildefonso Guajardo, who also appeared during an event headed by President Enrique Peña Nieto, which launched the promotion of the Made in Mexico march, which includes productions financed by foreign capital.

Amid the measures announced by Washington, the sale of new light vehicles reported a three percent increase in January and despite protests over rising gasoline and diesel prices that began on the first day of the year here.

According to the monthly report by the Mexican Association of Automotive Industry (AMIA) and Mexican Association of Automotive Distributors (AMDA), during the first month of this year, 123 thousand 260 new units were sold, three thousand 567 more compared to The same month of 2016.

In the comparison that makes the report between sales from December 2016 and January last, there is however a drop of 36.7 percent.

As for sales by brand, the US Ford, which decided not to invest 1.6 billion dollars in the construction of a new plant in San Luis Potosí, reported a rise of 4.6 percent.

At the same time, from today the country will free of taxes imports of electric cars, taxes, according to decision announced by the Secretariat of Economy (SE).

The decree published by that agency in the Official Gazette of the Federation states that one of the challenges of Mexico and the world’s major cities is to reduce the emission of greenhouse gases, which are largely produced by transportation.

According to experts, all those steps translate into an effort to address Trump’s threats and measures affecting Mexico, and create uncertainty in international financiers, in which Peña Nieto set his hopes to push for several structural reforms of the economy.

sus/mem/lam/ool

Article source

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>