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NEWS
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 Mexico will stay as a key place for Ford
Louise Goeser, Ford's President and CEO in Mexico confirmed Mexico will stay as a key manufacturing location for this international company's operations, as well as for new investment. When confirming Ford Motor Company's intent to invest in Mexico and strengthen its manufacturing presence there...
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Auto parts potential up; Mexico surpasses Canada and Japan
Saltillo, Coahuila - Mexico has consolidated its position as the first auto parts supplier for the USA and has broadened the gap separating it from Canada and Japan, its closest followers in the share of the market. During the first quarter of 2006, Mexico exported automotive parts for US$6.392 billion, a 10.2% increase when compared to the same term the previous year.
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Plextron Corp. to Locate in Saltillo
Toronto based Plextron Corporation has entered a into a 3 year agreement for the provision of manufacturing support, or "shelter" services with The Offshore Group. Plextron will occupy 35,000 square feet of industrial space at The Offshore Group's La Angostura Industrial Park in Saltillo, Coahuila, and will employ from 50 - 100 direct labor workers at the projects maturity.
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GM starts building plant in SLP
San Luis Potosi, Mexico - With an investment over US$650 million, General Motors de Mexico started the construction of an assembly plant in Villa de Reyes municipality, which will produce 30 vehicles per hour. The starting signal was given by President Vicente Fox, Governor Marcelo de los Santos and GM General Director Arturo S. Elias.
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Aircraft parts to be designed in Chihuahua
Chihuahua - Labinal Safran Group will open in Chihuahua an aircraft parts design office, to design wire bundles and their location and shape, to offer their customers value added. The Company's President in Mexico, Jorge Ortega, informed that Labinal's customers include the two largest aircraft assemblers in the world, Boeing and Airbus, as well as other important companies such as Bombardier and Raiteon.
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Auto parts sector grows 16 %
Monterrey, Mexico - Auto parts sector in Mexico registered a 16% year-to-year growth in production during the first quarter, according to Ramon Suarez Fernandez, Executive President of the Mexican Auto Parts Association, Industria Nacional de Autopartes (INA). He said that the growth is fostered by production in final automotive industry, which in the first four months of the year grew 34.9%, as well as by the dynamism in automobiles exports, mainly to the USA.
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Industrial parks being built in the USA
Mexico City - Some Mexican industrial parks' developers will cross the border to build last generation buildings and even industrial cities. This is because many constructors in the USA are turning to other business lines which are more profitable in the short term, such as shopping malls and housing developments, explained Ferry Williams from KellyUSA a leader developer in San Antonio, Texas.
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ARTICLE OF THE WEEK
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A Mexican's Point of View - "Manitoba"
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By Samuel Peña Guzman
Foreign Investment Coordinator of Nuevo Leon
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 During a recent trip I made accompanying Nuevo Leon Governor to Manitoba Province in Canada, I noticed that, like in Mexico, there are differences in customs, culture and education among Provinces in Canada; there are even socio-economic differences.
While in Québec culture is quite similar to that in Europe, in Manitoba culture resembles more that of the US Medium West. This also happens when we compare traditions and customs in Mexico; in the South these are quite similar to those in Central America, while in the North they resemble more the American way.
Going back to our business trip, Manitoba hosted the North America Leaders Summit, attended by the Premiers of several Canadian provinces, as well as US and Mexican governors, with the attendance of Canada's Prime Minister Stephen Harper. The interaction among rulers and the exchange of opinions on several topics, focusing mainly on the North America's economy, was something worth observing.
Undeniably, problems are diverse and difference between Mexico and our north neighbors is no exception.
When compared to Québec, for example, Manitoba's population is less than half of Québec's, barely reaching 1´177,600 people. Also, GDP per capita is under the national mean, amounting to $22,939 Canadian Dollars against average income per capita of $29,821 in Canada.
Manitoba's main line of business is exporting agrarian and mining products, with a stable and diversified economy. My attention was called to the fact that Manitoba has abundant natural resources, mainly water, which provides this Province with hydroelectric energy at the lowest cost in North America. It also has abundant petroleum and other mineral natural resources.
Manitoba Province concentrates 11% of Canada's farming and stockbreeding products; this sector is divided as follows: cattle 35.3%, oil seeds 25.8% and wheat fields 9.8%, according to approximate data.
Areas of opportunity are therefore found in the agrarian and stockbreeding sectors. Businessmen from said Province are seeing a great potential in exporting their products to Mexico.
 On other issues, the small town of Gimli in Manitoba hosted North America Leaders. As I already mentioned, it was a privilege for me to listen to reflections showing the perspectives of leaders in North America. Mention was made of the statement made at Hemisphere Summit held last year in San Pedro Garza García, N. L., when the three countries in the region agreed that NAFTA has been beneficial for said region's economy. Therefore there is willingness to continue supporting the interaction among all three countries.
I was pleased to hear that governments are aware that authorities must be more sensitive to regional problems and also give priority to regional interests by implementing cooperation mechanisms beyond trade sector and not hindering existing synergy.
This also translates into adopting an integral vision to foster competitiveness and innovation in the production sector, focusing on financing services, infrastructure and new technologies as well as strengthening production chains, trade, use of resources, juridical safety and the advantages found in each country.
I think the government's role in the promotion of the above-mentioned items is essential because our societies and governments must join efforts to promote innovation and transform it into welfare for everyone. Fostering education and science and technology development - providing present and future generations with the tools required to develop a knowledge-based economy, is definitely an effort shared by several sectors, mainly business, academic and government.
 On the other hand, due to the fact that the USA have focused their foreign policy on inland safety, Mexico and Canada must join efforts and show solidarity to the USA, strengthening safety mainly in the border. It is necessary, however, to emphasize the need to avoid hindering free trade or communities development, because based on safety some public policies that send a wrong message could be adopted, such as raising walls in our borders.
To conclude, Manitoba provided Mexico, the USA and Canada with a panel to discuss the need of progress in all three economies in North America, reaching for higher economic and social development levels and narrowing as much as possible current economic "gaps" found mainly in Mexico. If this is not achieved throughout the years, we could be speaking about a possible failure. Something to think about: How long will it take us? Notwithstanding the arguments and discussion this could arise, I am positive that this will take more than a year, three years, six years; the problem may be that we as a population put up with the slow growth we currently have. We, as population, will have to be tolerant, do we have any choice?
Hector Samuel Peña LL.M, MPA Currently works as a Foreign Investment Coordinator for the State Government of Nuevo León, he has LLM Masters in Law from American University, Washington, College of Law, and a Masters in Public Administration from the George Washington University and has advised foreign companies who are expanding operations in to Mexico. He is also a professor at the State University of Nuevo Leon in Monterrey, Mexico and a Member of the Consejo Mexicano de Asuntos Internacionales COMEXI.
The point of view is strictly from the author and does not represent the vision on any of the author institutions relationships.
He can be reached at: samuel.pena@mexicoglobal.com
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MEXICO'S WEEKLY HEADLINES
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| » In five years Mexico will produce its first regional airplane |
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| » State of Nuevo Leon negotiates Toyota’s plant |
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| » Investment in real estate in Mexico will grow to US$6 billion |
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| » Mexico sells more cars |
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| » Mexico will maintain its economic stability in this electoral year: Dallas Fed |
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EVENTS
2006
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JULY
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12TH EDITION OF PAACE AUTOMECHANIKA MEXICO
Mexico, D.F., Mexico
12-14 Jul.
CONGRESO INTERNCIONAL DE LA INDUSTRIA AUTOMOTRIZ EN MEXICO
Mexico, D.F., Mexico
12-14 Jul.
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