News, Insights and Best Practices for Manufacturing in Mexico

Mazda begins vehicle production in Mexico

09 Jan 2014

Category: Automotive Manufacturing

Many international automakers have a stake in North American markets, resulting in a growing number of manufacturing plants being constructed throughout the U.S., Canada and Mexico. According to the AutoBlog, unstable international currencies and ballooning costs associated with shipping materials overseas has forced automakers to reevaluate the way they produce vehicles. Certainly, consumers aren't going to pay a premium to help car manufacturers recoup the costs of shipping vehicles and demand isn't slackening for vehicles from Asian automakers. Accordingly, Mazda has recently announced it will begin manufacturing the Mazda3 sedan in Mexico.

The primary market will be U.S. consumers but will also expand the vehicle's reach to Europe and other American countries. Meanwhile, the blog suggested the auto manufacturer will likely follow up with the Mazda2. Mazda Motor Manufacturing of Mexico President and CEO Keishi Egawa told Automotive Business Review that the new plant will allow the company to be part of a global market.

"We are committed to continue our efforts to contribute to the growth of Mexico's economy through the production of vehicles and the development of the excellent human resources who support and lead the automobile industry here," Egawa explained.

This project has been in development since 2011 when the company laid the foundation for the plant in Salamanca, a city in the central state of Guanajuato. The region has seen an influx of manufacturing due in large part because of a highly-skilled workforce and welcoming trade arrangements, namely the North American Free Trade Agreement. Mazda expects the manufacturing plant to produce a capacity of 230,000 vehicles annually, which will help the company quickly and efficiently get their cars to market without having to navigate international trade barriers.

With improved flexibility in supply chains afforded by Mexico's close proximity to U.S. and Canadian markets, the automaker will likely have an advantage over competitors located abroad.


Related posts