The auto parts industry for vehicles installed in Mexico could attract $15.0 billion of Foreign Direct Investment (FDI) due to the relocation of companies from Asia to Mexico, a figure that increased by $5.0 billion in one month, according to the report of the general director of the National Auto Parts Industry (INA, business chamber), Alberto Bustamante.
Last month, Bustamante commented that the FDI estimate for the so-called “nearshoring” was $10.0 billion.
According to information from the INA, the new estimate for the relocation of companies to Mexico is for more than $40.5 billion, of which 37 percent or $15.0 billion will be in the auto parts industry.
"The auto parts industry is the main recipient of nearshoring or investment relocation," Bustamante said at a press conference.
Another forecast was employment. For this year it is 891,000 workers, if the objective is met there will be a new historical record, exceeding the 886,000 workers hired in 2018.
Bustamante said that currently the industry installed in Mexico exports to the United States 90 percent of the value produced. Thus, 21 percent of the value of vehicles in the American Union are made with Mexican auto parts.
He even said that 21 percent of the auto parts of Tesla brand vehicles and 80 percent of Ford's Mustang Mach-E are with auto parts made in Mexico.
The interest of the relocation of companies in Mexico is due to the geographical location with the second largest producer of vehicles in the world. In addition, due to the higher costs generated by the trade dispute between the United States and China.