Location, efficiency, and costs are among the reasons German automotive companies have chosen Mexico to expand their borders.Germany’s automotive industry is synonymous with efficiency and Mexico is a worthy way of showcasing this.

In spite of worldwide challenges faced by automotive companies, various successful German firms have come to our country attracted by its location, efficiency and industrial costs.

“The German automotive industry, which has an interest in a market directed by the dollar, has to establish itself where that market is,” asserted Giselher Foeth, director of the joint Mexican-German Chamber of Commerce and Industry (CAMEXA), which helps establish contacts between German and Mexican companies and businessmen.

According to Foeth, Mexico offers the following essential elements: lower costs based on the relationship between the peso and the dollar; a free trade agreement; and manpower that works. And while the general view of the German automotive industry in Mexico reflects what is happening in the rest of the world, CAMEXA’s representative assures that certain firms, like Volkswagen, are in a better situation thanks to having diverse markets and not being so dependent on the United States.

Still, the future of the German automotive industry in Mexico is optimistic. “There are various good projects that are set to go forward,” Foeth asserted “It will be difficult in 2009 but 2010 will be better.”

Source: Promexico, June 2009