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Contents
1. Global Overview..............................................................................................................................................................................................2
1.1 Objectives......................................................................................................................................................................................................2
1.2 Key Indicators 2012.......................................................................................................................................................................................3
1.2 Main indicators of the industry in Mexico 2012...........................................................................................................................................3
2. Description of the auto parts industry.............................................................................................................................................................4
2.1 Supply chain of the auto parts industry.........................................................................................................................................................6
2.2. Major auto parts for light vehicles................................................................................................................................................................6
2.3. Minor Auto parts for Light Vehicles............................................................................................................................................................6
3. Global Outlook...............................................................................................................................................................................................7
3.1 Segmentation by line of business...................................................................................................................................................................8
3.2 Global auto parts production.........................................................................................................................................................................8
3.2.1 Global consumption...................................................................................................................................................................................8
3.2.2 Global trade................................................................................................................................................................................................9
3.3 Industry trends..............................................................................................................................................................................................9
3.3.1 Supply Development and local adaptation.................................................................................................................................................9
3.3.2 Life cycle reduction of automotive models...............................................................................................................................................9
3.3.3 Hybrid and electric cars..............................................................................................................................................................................9
3.3.4 Car safety....................................................................................................................................................................................................9
3.3.5 Lighter cars (new materials).......................................................................................................................................................................9
3.4 Leading companies in the world.................................................................................................................................................................10
3.5 Certifications...............................................................................................................................................................................................10
4. The Auto parts Industry in Mexico................................................................................................................................................................11
4.1 Production and consumption.......................................................................................................................................................................12
4.2 Auto parts trade in Mexico..........................................................................................................................................................................12
4.3 Transnational companies in Mexico............................................................................................................................................................13
4.4 Localization and specialization of auto parts production in Mexico............................................................................................................................14
4.5 Manufacturing costs....................................................................................................................................................................................15
4.6 Supply capacity............................................................................................................................................................................................15
4.7 Foreign direct investment (auto parts).........................................................................................................................................................17
4.8 Companies bet on Mexico; supply attraction and development of the national supply chain.....................................................................18
4.9 Chambers and associations . .......................................................................................................................................................................20
4.10 Automotive engineering and design centers..............................................................................................................................................21
5. Investment opportunities...............................................................................................................................................................................23
6. Export Opportunities....................................................................................................................................................................................25
7. Legal framework............................................................................................................................................................................................27
7.1 PROSEC Automotive and Eighth Rule.....................................................................................................................................................28
7.2 Automotive decree.......................................................................................................................................................................................28
7.3 Drawback....................................................................................................................................................................................................28
7.4 IMMEX......................................................................................................................................................................................................28
7.5 Shelters . .....................................................................................................................................................................................................28
7.6 Rules of Origin (automotive)......................................................................................................................................................................29
7.7 Standards and certifications.........................................................................................................................................................................29
8. Conclusions...................................................................................................................................................................................................31
Glossary.............................................................................................................................................................................................................33
Map of auto parts companies............................................................................................................................................................................34
Figures
Figure 1. Supply chain......................................................................................................................................................................................6
Figure 3. Localization and specialization of auto parts production in Mexico...............................................................................................14
Figure 2. Localization and specialization of auto parts production in Mexico...............................................................................................14
Figure 4. Supply capacity................................................................................................................................................................................16
Graphs
Graph 1. Aftermarket structure, 2010..............................................................................................................................................................8
Graph 2. Auto parts production share by country, 2012...................................................................................................................................8
Graph 3. Consumption by country 2012 (md).................................................................................................................................................8
Graph 4. Main companies by origin...............................................................................................................................................................10
Graph 5. Global trade (md)............................................................................................................................................................................12
Graph 6. Origin of companies established in Mexico....................................................................................................................................13
Graph 7. Manufacturing costs, 2012..............................................................................................................................................................15
Graph 8. Auto parts FDI (md).......................................................................................................................................................................17
Graph 9. Total market value and investment opportunity in the supply chain in Mexico (billions of dollars).....................................................................................24
Graph 10. Total market value and investment opportunity in the supply chain in Mexico (billions of dollars)...................................................................................24
I Overview of
the industry
Introduction
1.1 Objectives
The purpose of this document is to provide
an overview of the domestic and international auto parts industry,
as a tool to facilitate the
identification of business opportunities for
the industry in Mexico.
It includes a reference framework of the
industry on a global
level with information
on the production, sales, main trends, consumption, trade, investment and regulations,
among other topics.
Global consumption:
1,363,647 MD1
Global exports
843,351 MD2
Global imports
807,696 MD2
5th
Economic units
2,5598
5th
II Description
of the Auto
Parts Industry
Tier 1: Direct suppliers of OEMs. They develop components that include engine parts, steering and suspension systems, air conditioning systems, electronic components, etc.
Die-cutting
Sheet Metal
Electrostatic paint
Surface treatment
Plastics
Welding
Braking systems
Machining
Die-cutting
Forging
Welding
Sintering
Thermal treatment
Surface treatment
Transmission
..................................................................
Traction system
Cooling system
system
Body
Machining
Forging
Die-cutting
Pressure injection
Sintering
Mechanic
assembly
Thermal treatment
Steering
system
Pressure injection
Mechanic
assembly
Surface treatment
On the other hand, support processes to develop and manufacture components or parts that are included in the industry are also
essential for the auto parts industry.
Exhaust
system
Machining
Die-cutting
Welding
Pressure injection
Mechanic
assembly
Thermal treatment
Surface treatment
Machining
Forging
Die-cutting
Welding
Pressure injection
Mechanic assembly
Thermal treatment
Surface treatment
Safety system
Machining
Die-cutting
Mechanic assembly
Thermal treatment
Surface treatment
Plastics
Rims and tires
Machining
Die-cutting
Sheet Metal
Thermal treatment
Surface treatment
Machining
Die-cutting
Sheet Metal
Welding
Mechanic assembly
Thermal treatment
Surface treatment
Plastics
Electric and
electronic
components
Machining
Die-cutting
Welding
Mechanic assembly
Plastics
Fuel consumption
Machining
Extrusion
Sheet Metal
Welding
Surface treatment
Die-cutting
Stamping
Plastics
The supply chain of the auto parts industry is based on companies which perform processes such as forging, machining, welding, etc., because they supply material at various production
levels of the industry, to produce major and minor components
that will be supplied to assemblers or original equipment manufacturers (OEM).
T2
Major
components
Spare parts
chain stores
Air filters
Washers
Pistons
Gas tanks
Torque rods
Pins
Hoses
Forks
Disk/drum brakes
T1
Major
components
Processes
Garage chains
Minor
components
After Market
OEMs
T1
Major
components
Oil sump
Engine valves
Tank caps
Hubs
Accessories
Rises
Clamps
Spark plugs
Tracks
Joints
Pumps
Main harness
Crowns and pinions
Safety systems
Bodies
Suspensions
Air bags
Crankshafts
AC systems
Radiators
Compressors
Injection systems
Catalyzers
Alternators
Indicators
Sensors
Gears
Dashboards
Power window/
Windshield wipers
Audio
Video/Multimedia
Tires
Rims
Transmissions
Braking systems
III Global
Outlook
7
1.
2.
3.
4.
5.
Spare parts
14.1%
28.9%
Equipment
15.8%
and accesories
21.8%
19.5%
Wear parts
307,606
269,526
234,032
71,832
59,156
46,668 41,790
39,619
29,585
25,481
11..For the information on Mexico, INA data were used; for the rest of the countries, Global Insight.
12..The analysis considers the following countries: Mexico, Canada, United States, Germany, Russia, United Kingdom, China, Japan, South Korea and Brazil.
13. ProMexico with data by INA y Global Insight.
14..ProMexicos estimates with data by Global Insight, INA and Global Trade Atlas.
sia
Ru
s
om
ni
te
K
in
gd
ea
K
or
ad
ut
h
an
il
So
az
Br
ico
ex
100%
1,399,302
Total
an
5.4%
3.7%
75,808
52,269
Others
er
Latin America
13.3%
pa
22.1%
185,625
Ja
309,328
European Union
SA
North America
55.5%
hi
776,271
Asia-Pacific
na
Country
Imports
2012 (md)
Germany
122,018
14%
USA
143,203
18%
USA
90,771
11%
Germany
90,035
11%
Japan
84,247
10%
Canada
45,761
6%
China
74,141
9%
6%
6%
51,872
45,721
Mexico
China
South Korea
39,849
5%
Mexico
36,233
4%
France
37,666
4%
United
Kingdom
35,409
4%
Italy
29,660
4%
France
33,653
4%
Cezch.
Republic
24,260
3%
Russia
26,516
3%
Poland
22,651
3%
Spain
26,105
3%
Japan
23,664
3%
Rest of the
world
266,216
32%
Rest of the
world
301,396
37%
843,351
100%
Total
807,696
100%
Country
Total
More and more assemblers sell these cars and their production
and sales are expected to increase over time, reducing the share
of internal combustion fuel engine cars. That is why auto parts
innovation must evolve to supply this new market.
Localization is based on the quality of the industrys development in countries where the leading assemblers operate, due to
demands related to improvements in design and product innovation to integrate into their vehicles. The existence of design
centers that develop technology innovation in manufacturing
Continental AG (Germany)
Webasto AG (Germany)
Faurecia (France)
ZF Friedrichshafen AG
(Germany)
Bridgestone/Firestone Inc.
(Japan)
BASF SE (Germany)
Freescale Semiconductor
Inc. (USA)
CalsonicKansei Corp.
(Japan)
Valeo SA (France)
Nemak (Mexico)
Bayer MaterialScience
(Germany)
Trelleborg Automotive
(Sweden)
Benteler Automobiltechnik
GmbH (Germany)
3M Automotive(USA)
Cooper-Standard
Automotive (USA)
Du Pont (USA)
Eberspaecher Holding
GmbH (Germany)
Draexlmaier Group
(Germany)
3.5 Certifications
1. ISO 9000
This is a set of quality and continuous quality management standards that were established by the International Standardization
Organization (ISO). ISO 9000 specifies the way in which an organization operates, their quality standards, times of delivery and
service levels. Its implementation offers businesses numerous
advantages, including the following.
2. ISO/TS 16949
Commonly known as TS2, ISO/TS 16949 is a catalog of the
requirements of the automotive quality system that is based on
various international industry standards and requirements, such
as AVSQ (Italy), EAQF (France), QS-9000 (US) and VDA 6.1 (Germany). ISO/TS 16949 enables suppliers and subcontractors of the
automotive industry to use a single document to comply with
these international quality management standards.
The goal of TS2 is to develop fundamental quality systems that
provide continuous improvements with an emphasis on fault
prevention, variation and waste reduction in the supply chain. It
aligns international requirements of the automotive quality system to provide the following benefits.
3. ISO 14000
ISO 14000 is a set of environmental management documents that
once implemented will affect every area of an organizations
management of its environmental responsibilities and will help
organizations to systematically deal with environmental issues,
with the goal of improving environmental behavior and opportunities for economic benefit.
The following are quality systems that are used in the industry:
Six sigma
Lean Manufacturing
Production part Approval Process
Advanced product quality planning
Balance Scorecard
5s
10
IV The Auto
parts Industry
in Mexico
11
In Mexico, the auto parts industry follows the same trend as the
automotive industry as a whole. This has a positive impact, because in 2012, light vehicle production reached a new historic
record of 2.8 million units, 12.8% more than what was recorded
in 2011.17
The main destination for Mexican exports from the auto parts
industry was the United States, with 90% share. It is worth mentioning that one third of the value of imported auto parts in the
United States comes from Mexico, making it the main supplier
to this market.
USA
46,585
90%
Canada
1,795
3%
583
1%
353
1%
The growth of the automotive industry benefits the auto parts industry because the market will demand a wide range of products
for assembly companies production lines, while the number of
vehicles sold will increase the demand from the aftermarket or
spare parts market segments.
Brazil
Germany
UK
246
0%
Japan
202
0%
China
181
0%
Thailand
178
0%
Australia
141
0%
Italy
120
0%
1,488
3%
Total
51,872
100%
Trade Partner
20,335
56%
11%
Electrical parts
Amount (md)
16,463
% share
USA
22%
China
3,805
11%
Japan
2,387
7%
Germany
1,856
5%
8,597
Engine parts
6,993
9%
5,809
8%
4,730
6%
Gasoline engines
3,986
5%
Italy
348
1%
2,916
4%
India
337
1%
Diesel engines
2,638
4%
2,850
8%
2,864
4%
Total
36,233
100%
1,944
3%
1,575
2%
Bodies
1,256
2%
1,189
2%
959
1%
417
1%
Cooling
361
0%
Other
Total
12,098
16%
74,795
100%
Canada
1,654
5%
South Korea
1,426
4%
Brazil
697
2%
Taiwan
538
1%
Exports
Source: INA
Imports
12
Trade Balance
France
Germany
USA
19%
28%
5%
20%
28%
Japan
Source: ProMexico
Staff
employed
215,432
74,744
40,867
Plastic autoparts
34,976
23,923
21,354
16,124
14,551
11,213
Glass
7,542
6,399
4,414
3,577
108,590
583,706
13
Northwestern
Region:
Northeastern
region:
198 Plantas
Products/systems:
Air conditioning systems,
automotive systems,
plastic parts, parts for
electrical systems, engine
parts and machined parts.
70 Plants
Products/systems:
AC and heating systems,
interior components, accessories
and electrical systems for automobiles.
3..Southeastern region. includes 101 plants distributed across Tlaxcala, Puebla, Tlaxcala, the State of Mexico, Morelos, Hidalgo and Mexico City. Production in the area focuses on seats, air conditioning, hydraulic bottle jacks, interior components, engine
parts, electric systems, stampings and suspensions.
4..Center region. includes 142 plants in the states of Jalisco, Guanajuato, Quertaro, Aguascalientes and San Luis Potos. Production in this region focuses on stampings, electric components, brakes and their parts, rubber products, engine parts and transmissions for cars.
Figure 3. Localization and specialization of auto parts production in Mexico
Southeastern
region:
Center
region:
101 Plants
Products/systems:
142 Plants
Products/systems:
14
Precision manufacturing
er
m
y
an
G
Ita
ly
er
m
-3.5%
an
USA 0.0%
Ja
p
an
ad
C
K nite
in d
gd
om
Fr
an
ce
il
Br
az
an
-0.4%
USA 0.0%
2.6%
Ja
p
Ita
ly
0.1%
an
y
-5.4% -5.0%
M
ex
ico
a
an
ad
il
K nite
in d
gd
om
Fr
an
ce
Br
az
M
ex
ico
7.4%
-3.1% -2.9%
-5.6%
-6.0%
-13.0%
-11.9%
Metal components
10.9%
-7.8%
er
an
y
a
ad
USA 0.0%
-6.2% -6.0%
-9.8%
-7.6%
Ja
-1.0%
pa
an
C
ia
nc
Fr
a
az
Br
K nite
in d
gd
om
Ita
ly
il
ico
ex
M
n
pa
Ja
-1.4%
USA 0.0%
y
m
er
G
-2.8%
-8.9%
an
a
ad
an
C
ly
Ita
U
K nite
in d
gd
om
Fr
an
ce
il
az
Br
ex
ico
10.0%
-19.5%
-19.4%
Source: ProMxico with data by Competitive Alternatives 2012, KPMGs guide to international business costs
15
Nuevo Len
Estado de Mxico
Distrito Federal
Quertaro
Chihuahua
Coahuila
Baja California
Nuevo Len
Distrito Federal
Coahuila
San Luis Potos
Chihuahua
Quertaro
Total
decompanies
empresas 350
Total
Total
empresas96
96
Totalde
companies
Foundry
Welding
States with the
highest production
Estado de Mxico
Nuevo Len
Jalisco
Coahuila
San Luis Potos
Distrito Federal
Puebla
Tlaxcala
Nuevo Len
Estado de Mxico
Durango
Tamaulipas
Coahuila
Total
decompanies
empresas 212
214
Total
Total
Total
274
Total
decompanies
empresas 274
Stamping
Distrito Federal
Estado de Mxico
Chihuahua
Quertaro
Nuevo Len
Tamaulipas
Tlaxcala
Estado de Mxico
Nuevo Len
Chihuahua
Quertaro
Tlaxcala
Total companies 68
Total companies 55
Assemblies
Surface treatments
States with the
highest production
Nuevo Len
Estado de Mxico
Distrito Federal
Jalisco
Nuevo Len
Estado de Mxico
Coahuila
Durango
Tamaulipas
Total companies 21
16
In the referenced period, 155 companies from the auto parts industry announced 169 investment projects creating an estimated
62,356 new jobs.25
Between 2006 and 2012, accumulated investments in this industry reached 9,687 md. This means that the auto parts industry
accounts for 6% of the total amount generated by investments
recorded in every industry during the referenced period on a national level.24
2,239
1,996
1,770
1,453
2008
2009
19
2008
22
2009
26
2010
18
2011
30
38
169
Source: Created by ProMxico with data by FDI Intelligence, Financial Times Ltd.
In this period, 155 companies announced investments. The German company Robert Bosch was the first, with a total of seven
investments announced between January 2006 and June 2012.
It is worth mentioning that the top ten companies to announce
investments in Mexico account for 22% of investment announcements in the auto parts industry, with 37 projects.
171
2007
16
2007
Total
857
2006
2006
2012
1,201
Number of
proyects
2010
2011
2012
Below are the ten leading companies that announced the largest
number of projects in the referenced period25:
Value..
(md)
155
2%
Plastic autoparts
266
3%
495
5%
Glass
104
1%
225
2%
464
5%
0%
0%
1,205
12%
76
1%
584
6%
209
2%
85
1%
80
1%
5,725
59%
Total
9,687
100%
Robert Bosch
Magna International
DPH Holdings (Delphi)
Meritor (Arvin Meritor)
Haldex
Behr
Hitachi Automotive Systems
American Axle and Manufacturing
Mahle
Nissan
Continental will build a plant to manufacture electronic components (sensors), the plant will begin opeartions at the begining of
2014. The location is not yet decided.
17
Later, Mazda and Toyota announced that the latter will invest
separately to expand the plant to manufacture approximately 50
thousand subcompacts.
Jatco: will establish a second plant in Aguascalientes to manufacture CVT and CVT8 transmissions.
The Chevrolet
Camaro Z28 has a
six speed manual
transmission
with short
throw shifter
made in Mexico.
Yutaka Giken: will establish a plant close to one of Hondas factories to supply exhaust pipes, engines and brakes.
18
The following are companies in the auto parts industry that have announced investments that could be interested in becoming suppliers in the area.
Table 11. Auto part supplier companies
Company
Origin
Destination
city
Estimated
investment
(md)
Estimated
jobs
Setex Inc
Japan
Apaseo el
Grande
30
1000
Kayaba
Industry
Japan
Silao
57.8
N.D.
Hydraulic pumps,
hydraulic shock absorbers
and steering components
Tsubakimoto
Chain
Japan
Silao
3.5
30
Tigers Polymer
Japan
Silao
18
200
Plastic parts
Yachiyo
Industry
Japan
Apaseo el
Grande
20
100
Fuel tanks
Ashimori
Industry
Japan
Guanajuato
36.3
253
Seatbelts
N.D.
Denso Mexico
Japan
Silao
57
400
Akebono
Brake Industry
Japan
Silao
5.1
43
Brakes
AccuGear
United States
Silao
12.7
100
Precision assemblies,
differentials and gears
Summit
Polymers
United States
Silao
35.7
258
American Axle
Manufacturing
United States
Silao
17.7
70
Transmissions and
chassis
Rehau
Germany
Apaseo el
Grande
100
Plastic extrusion
Kromberg &
Schubert
Germany
Irapuato
7.4
60
Electronic components
GKN Driveline
United Kingdom
11.5
150
Celaya
Comments
Public transportation in
the city of Las Vegas uses
brake pads made in Mexico.
19
In addition, it supports the growth of Mexicos automotive industry, surveys the standard framework that influences the industry and analyzes the evolution and relevant data of affiliates:
20
CIATEQ performs technology development projects for the automotive and auto parts industry, from basic engineering to the
manufacture of purpose-built machinery and equipment, tools,
test benches, control and measurement systems, creation of prototypes and development of specialized vehicles for airports. The
centers projects include the following:
Its goal is to position Mexico as a viable global option for automotive research and development and to promote the development and application of new technologies in the industry which
increase the technical capacity of Mexicans for the development
of new automotive products and technologies
21
players, such as companies, institutions, chambers and government, with the purpose of expanding information and reducing
the gap between them to achieve greater support for the national
industry.
The center has more than 300 researchers, labs, equipment and a
network of national coverage. It has presence in Coahuila, Monterrey, the State of Mexico, Quertaro, Guanajuato, Jalisco, Puebla, Aguascalientes, Morelos, San Luis Potos and Sonora.
Nuevo Len Automotive Cluster (CLAUT)38
The Nuevo Len Automotive Cluster is a civil association comprising tier 1 automotive industry manufacturers and related
academic and government institutions.
CLAUT seeks to develop the integrated chain from vehicle assembly companies to tier 1, 2 and 3 suppliers, as well as companies that support the automotive industry, such as logistics and
consulting service companies, among others.
22
V Investment
Opportunities
23
5. Investment opportunities
Mexico has a solid auto parts industry that makes it a good global market. In addition, it has direct access to the NAFTA region,
expanding companies potential market. Opening a plant in
Mexico is an excellent opportunity for internationally renowned
companies since they can expand their production and exportation capacity to the NAFTA zone and Latin America.
Transmissions
Fuel engine
Bodies
Safety systems
Injectors
Sensors
Dashboards
Pumps
24
VI Export
Opportunities
25
6. Export Opportunities
Nationally, assembly and Tier 1 companies seek to develop strategic alliances with suppliers abroad that guarantee performance, quality, durability, price and innovation. There are companies
in Mexico that offer quality and a capacity to export products and
processes that are fundamental for the automotive industry.
Exports of basic processes such as stamping, forming, die-casting, plastics injection and machining, are also a window of opportunity for Mexican companies that comply with the quality
required by international markets. This could be an opportunity
for Tier 2 companies to position themselves abroad
Oil sump
Gear boxes
Tank caps
Hubs
Accessories
Rises
Clamps
Spark plugs
Tracks
Joints
Air filters
Washers
Pistons
Gas tanks
Torque rod
Pins
Hoses
Forks
Disc/drum brakes
26
VII Legal
Framework
27
7. Legal framework
7.1 PROSEC Automotive and
Eighth Rule
To be automatically considered manufacturing companies under the Sectoral Promotion Program of the Automotive and Auto
parts Industry.
Sectoral Promotion Programs (PROSEC) are aimed at manufacturers to help them import inputs with preferential tariff, in order
to maintain their competitiveness, particularly in globalized industries like the automotive.
The decree establishes three registration modes to access its benefits; however, only one of them is worth mentioning for the
auto parts industry: article 4 of this decree, which description
supports that companies that perform or will perform manufacturing, assembly and even bulletproofing processes that increase
the value of the vehicle by 50% can obtain the benefits, only if
BMW is registered as a participating company under this article.
Number of
Tariff
Fractions
(current)
7.3 Drawback
It provides beneficiary exporters the possibility of obtaining a return on general import tax paid for goods that are returned in the
same state or which have been altered or repaired.
Tariff (%)
1,837
602
420
136
53
21
10
2,312
761
7.4 IMMEX
This instrument simplifies processes and requirements for the
maquila regime. It allows the temporary import of goods required in an industrial or service process aimed to create, transform
or repair foreign goods that are imported temporarily for later
exportation. The beneficiaries of the program are selected by the
Ministry of Economy (SE) which can authorize resident legal entities to be taxed on a single IMMEX Program under Title II of
the Income Tax Law which considers a reduction of up to 50%
in tax rates.
7.5 Shelters
To be considered manufacturing companies for the purposes of provisions on automotive tax deposit and other
provisions of the Customs Law.
To be able to import with zero ad-valorem tariff any vehicles
of the segments which produce in Mexico, under the tariff/
quota, for an annual volume equal to 10% of production of
the immediately previous year.
Staff management
Licenses and permits
Accounting and fiscal services
Customs procedures
Operation and maintenance services
Transportation and logistics services, among others
41..Goods for the Sectoral Promotion Program for the Automotive and Auto Parts Industry, when companies are approved as per the 8th complementary rule, for the
interpretation and application of the Fee of the General Import and Export Tax Law based on the criteria established by the Ministry of Economy. SIAVI.
42. Amended on April 15, 2010.
43. Ministry of Economy, Monograph of the automotive industry.
28
For the automotive industry there are two types of international guidelines to establish standards and certifications focused
on vehicle manufacturing: the World Forum for the harmonization of vehicle regulations (WP.29) and rules established by the
WTO. The first was established by the European Union, while the
second was established together with the Department of Transportation, and both regulate vehicle imports to the United States.
The following table shows rules of origin related to the automotive industry that result from the various free trade or economic
cooperation agreements.
NAFTA
European Union
Brazil and Argentina: Index of regional content (IRC) not lower than 60%; Uruguay: IRC
not lower than 50%; Mexico: IRC not lower
than 30%.
Colombia*
Chile
Usually, the WP.29 meets three times a year. The subsidiary expert working groups each meet twice a year.
Bolivia
VRC of at least 32% using the net cost method
Costa Rica y
VRC of at least 32% using the net cost method
Nicaragua
Guatemala, Honduras VRC of at least 50%.
and El Salvador
Israel
Per**
Japan
*/ In April 2011, Mexico and Colombia reached an agreement to modify the rules
of origin that are applied to certain vehicles.
**/ In April 2011, Mexico and Peru signed a Free Trade Agreement that is in the
process of being approved.
Source: Created by ProMxico with data by the Ministry of Economy.
29
For the 2012-2016 period vehicles are expected to have a fuel efficiency of 15 km/l (35m/gal), while by 2015 it is expected to increase to 23 km/l (54.5 m/gal).
The cut would involve a reduction of 1.7 trillion dollars, an average of eight thousand dollars per vehicle for 2025.
This is part of a consensus established by assemblers to invest in
R&D of new vehicles and clean technologies; however, the impact
on Mexicos automotive platform did not create big concerns because the industrys design and technology in our country have
the infrastructure and progress required for the new production
of vehicles, and even offer Mexico the opportunity to become a
relevant producer of environmentally friendly vehicles.
30
VIII
Conclusions
31
8. Conclusions
The auto parts industry in Mexico has evolved positively. Production is expected to go from 74,795 md in 2012 to exceed 80,000
md in 2014. As a result, the federal and state governments, and
the industrys relevant players that have been mentioned in this
document, will have to work together and focus efforts on new
product innovation, the creation of new design centers that lead
to a more experienced national industry and the development of
state-of-the-art technology. Fundamentally, the attraction of investments to the automotive industry must continue, as it strengthens and furthers the auto parts industry in response to the higher market demand for the basic products and processes needed
for the industry to function properly.
Requirements imposed by both car assemblers and the spare
parts market force auto parts manufacturers to comply with high
levels of quality, efficiency, delivery times, customer service and
cost reduction strategies. Companies established in Mexico meet
all of these requirements and Mexico must continue to consolidate as an industry leader and become a cluster that serves as an
international platform, proving that Mexican products are high
quality and have high added value.
Mexican companies must be innovative and evolve in light of the
great changes that the industry requires, especially the penetration of hybrid and electric vehicles that require the supply chain
to create high added value products with very specific certifications.
32
Glossary
Assembly: The process to join two or more pieces using
screws, bolts, pins or fasteners.
Traditional and CNC machining: Traditional machining is done using a cutting tool to provide the desired configuration, while CNC machining is done using a computer
which produces more precise cuts.
.Injection molding: A semi continuous process where a molten polymer is injected into a pressure-closed mold
through a small orifice called a flap. The material solidifies
inside the mold and the final part is obtained by cooling the
mold and removing the molded part from the cavity.
33
Carplastic
Collins & Aikman
DeAcero
Decoma
Ensenada
Delphi
Alcoa Fujikura
Automotriz Safety Compo- Faurencia
Flex-N-Gate
nents
Goodyear
Mexicalli
Grupo Antolin
Bosch
Hella Behr
Honeywell
Kiekert
Nissan Design America
L & M Radiator
Plkington
Lear
Tecate
Leoni Wiring
Saint Gobain
Magna
Tijuana
Martinrea
Autoliv
Metokote
Blue Streak Electronics
Oxford automotriz
Bose
Renson
SY System Technologies
Delphi
Thyssenkrupp
Holley
TWB
Hyundai Translead
VRK Automotive Systems
Saint Gobain
(Kirchhoff )
Thyssenkrupp
Nogales
Trelleborgt
International Assembly
Molex
Sonora
Walbro
San Luis Colorado
TSE Brakes
Agua Prieta
Allied Signal
Breed Technologies
Chihuahua
Ciudad Obregn
Takata
HFI
Chihuahua
Empalme-Guaymas
CEP Products
Yazaki
Dana
Chahta Enterprises
Dayco
Delphi
Delphi
Intec Group
Goodyear
ITT automotive
Key Plastics
Jyco Sealing Technologies
Kolbenschmidt Pierburg
Solrac Corporation
Lear
Unlimited Services
Manoir Industries
Hermosillo
Span
Benteler
Sumitomo
Jalisco
Guadalajara
BorgWarner Morse Tec
Draxlmaier
Komyo
S & Z Rolmex
Sachs Boge
Saint Gobain
SemMaterials
Siemens
Sumida
Tashi-S Co.
ZF Sachs
Aguascalientes
Aguascalientes
Accel
Advanced Composites
Aisin
Amcor Pet Packaging
Bosch
Busscar
Calsonic Kansei
Chinoin
Condumex
Cooper Standard
Donaldson
Eaton
Fedex
Flextronics
General Electric
Gestamp
Hexagon Polymers
Jatco
Mahle
Monticello Spring
Morestana
Motodiesel
Nabco
Nicometal
Nissan Renault
Saint Gobain
Sanoh Industrial
Sensata Technologies
Siemens
Sigma Alimentos
Softtek
Tachi-S Co.
Tetra Pack
Texas Instruments
TRW
Valeo
Vipal
Volex
White-Westinghouse
Yazaki
Yorozu
Guanajuato
Celaya
Enertec
Kolbenschmidt Pierburg
Meridian automotive
Tenneco automotive
Irapuato
Bos automotriz
Getrag
Hutchinson
Universal Fasteners
Superior Industries
TRW
Visteon
Yazaki
Ciudad Juarez
Affinia
Alcoa Fujikura
Bombardier
Borgwarner
Bosch
Breed Technologies
Coilcraft
Cummins
Delphi
Eaton Corporation
Epic Technologies
Federal Mogul
Ferraz Shawmut
Honeywell
Inteva
Johnson Controls
Key Safety
Systems
Lear
Nichirin
Siemens
Sumitomo
Strattec
Valeo ITT
automotriz
Visteon
Yazaki
Cuauhtemoc
AFC
Delphi
Leoni Cable
Delicias
Goodyear
Foamex Corporation
GM Processing
Irvin automotriz
Magna Seating Systems
Monclova
Johnson Controls
Takata
Piedras Negras
Alcoa Fujikura
Findlay Industries
Littlefuse
San Luis Rassini
Ramos Arizpe
Acero Prime
Behr
Benteler
Borgwarner
Brown Corporation
Camisa
Detroit Global industries
Don Kwang
Grupo Antolin
Irvin-Takata
Johnson Controls
Leon Plastics automotriz
Magna International
Mahle
Manessman-Sach Ag
Meridian automotive
Metaldyne
Mubea
Oxford automotriz
TWB
Yazaki
ZF Sachs
Sabinas
Irvin automotriz
Magna International
Meridian automotive
Saltillo
Associated Tube
Collins & Aikman
Condumex
Delphi
Dong Kwang
Enertec
Flambeau
Goertz S
Greening
Grupo A
Hirotec
John Dee
Kay autom
KSR
Linamar
Magna
Martinre
OKE aut
Powerbrac
Sumitom
Takata
Textron a
Visteon
Saltillo/D
Wolverin
Ceva Log
DHL
Fuel Syst
Grimaldi
Johnson C
Magna
Meridian
Technolo
Metalsa
Nimex
Coahuila
Ciudad Acua
Alcoa Fujikura
Bendix
Cni,Inc
Len
Bader
Ferranti Packard
Hope Industries
Kasai
Lear
San Jos Iturbide
Flex-N-Gate
Salamanca
ACE
Silao
American Axle
Continental
Daetwyler Rubber
Delphi
Grupo Antolin
Lear
McCormick Tractors
Oxford automotriz
Plastic Omnium
SMC Corporation
Queretaro
Quertaro
VRK Automotive Systems
(Kirchhoff )
Aeroquip Group (Eaton)
Arvin Meritor
Aspel Group
Auma
Autoliv
Bosal
Bticino
Burgmann
Climate Systems
Collins & Aikman
Dana
Delphi
Durr
Eaton
Flex-N-Gate
Freudenberg-Nok
Gaindu Mondragon
Hitachi Cable
Irizar
Johnson Controls
Johnson Matthey
Kostal
Magna
Mann Hummel
Michelin
Mold-Tech
Nihon Plast
Norgren
Omni Manufacturing
Parts Finishing Group
Pilkington
Ronal
Siemens
Tremec
TRW
Valeo
VRK Automotive Systems
(Kirchhoff )
Visteon
Vitro
Chevron - Oronite
Clarion
Harada Industries
PPG Industries
San Luis Rasinni
Hidalgo
Ciudad Sahagn
ASF-Keystone
Bombardier
Gunderson
Colima
Manzanillo
Nissan
State of
Mexico
Toluca
Acero Prime
Aisin
Bosch
Brose
Carplastic
Collins & Aikman
Dana
Detroit Diesel
Eaton Corporation
Federal Mogul
Freudenb
Gates
Gestamp
HBPO
Hitchiner
Johnson C
Kirkwood
Lear
Magna
Mahle
Parker
Trellebor
TRW
Valeo
Cuautitl
Tepozotl
Bridgesto
Continen
Dixon
Durapart
Federal M
u Plastics
Schiele
g Donald
Antolin
ere
motriz
ea
tomotriz
ce Corporation
mo
automotriz
Derramadero
ne
gistics
tems
i
Controls
n Lightweight
ogies
berg-Nok
r
Controls
d
rg
n/Tultitln/
ln
one Firestone
ntal Tire
t
Mogul
Pemsa (Des-CIE)
Visteon
Torren
Caterpillar
Cooper Standard
Delphi
Enertec
Engine Power Components
General Electric
John Deere
Johnson Controls
Montupet
Sumitomo
Takata
Nuevo Leon
Linares
Delphi
Franklin Electric
Kingston Automotive
Monterrey Metro
Aisin
Alcoa Fujikura
Aluprint
Arvin Meritor
Bridgestone
Burgess Norton
Carusi
Caterpillar
Celestica
Cemm-Thome
Centigon
Dana
Delphi
Denso
Dirona
Enertec
Fenceo automotriz
General Electric
Gonher
Goodyear
International Navistar
John Deere
Kafus
Katcon
Kayaku Safety Systems
Kaydon
Key Safety Systems
Lear
Logtec
Magna
Mahle
Mobil Oil
Nippon Seiki
Parker
Piolax
Siemens
Takata
Taylor Corporation
TI Automotive
Toyota Tsusho
Visteon
Vitro
Yazaki
Tamaulipas
Altamira-Tampico
AFX industries
Delco
Delphi
Federal Mogul
Fontaine Fifth Wheel
Matamoros
AFX industries
Atlantic Tool & Die
Cardone Industries
Delco
Delphi
Federal Mogul
Fisher Dynamics
Fontaine Fifth Wheel
Inteva
Kongsberg Automotive
Parker Haniffin
Tapex
Valeo
Nuevo Laredo
Caterpillar
Delphi
GST Autoleather
ITT automotive
Kongsberg Automotive
Teleflex Automotive
Visteon
Reynosa
Alpine
ARC Automotriz
Delphi
Eaton
Fujitsu Ten
Hutchinson
Hydro Aluminum
Key Safety Systems
Kongsberg Automotive
Saint Gobain
Takata
TRW
Visteon
Sinaloa
Culiacn
Delphi
Insertech
Los Mochis
Sumitomo
Walbro
Durango
Durango
AAMSA Yazaki
Calsonic
International Wire
Leoni
Gmez Palacio
Linamar
Sumitomo
Zacatecas
Fresnillo
Bowles Fluidics
Corporation
Tlaxcala
Chiapas
Tlaxcala
Aunde Texel
Delphi
Euwe Eugen Wexler
Flocktechnick
Forjas Spicer
Grammer automotive
Johnson Controls
Chiapas
Yazaki
Puebla
Firestone
Goodyear
Grupo Desc
Honeywell
Intermerk
Isuzu
Magnet Marelli
Michelin
Quaker State
Saint Gobain
Seven Seas Autoparts
Timken
Vitro
Naucalpan
Mahle
Tlalnepantla
Air Design
Bosch
Condumex
DeAcero
Mexico City
Distrito Federal
Bosch
Bridgestone Firestone
Calsonic
Condumex
CPI Plastika
Federal Mogul
Firestone
Goodyear
Luk
Morelos
Cuernavaca
Air Design
Bridgestone Firestone
Tachi-S Co.
Cuatla
Continental Temic
Gates
Freudenberg-Nok
Saint Gobain
Puebla
Arvin Meritor
Benteler
Bos automotriz
Draxlmaier
Faurencia-Duroplast
Federal Mogul
Flex-N-Gate
Gestamp
Grupo Antolin
Huff
Johnson Controls
Kiekert
Lear
Luk
Magna
Parker Haniffin
San Luis Rasinni
Siemens
SKF
Sommer Allibert
Thyssenkrupp
TRW
Vitro