Automobility to Sponsor “Manufacturing for Mobility in Mexico” - Automobility
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Automobility to Sponsor “Manufacturing for Mobility in Mexico”

 

Doon Insight is excited to introduce a new workshop, Manufacturing for Mobility in Mexico. This event will focus on Mexico’s emerging role as a near-shoring hub for EV production and the mobility supply chain. Industry experts and a delegation of policy makers, industrialists, and investors from Mexico will discuss the benefits of the USMCA, supportive Mexican government policies, and Mexico’s strategic importance in the global automotive and aerospace industries. This workshop will take place in Bonny Doon, CA. Automobility Ltd. is co-sponsoring Doon Insights’ Mobility Tech Workshops in Bonny Doon, California.

In recent years, Mexico has quietly but rapidly positioned itself as a central hub for the North American automotive and mobility industry. This transformation, especially in electric vehicle (EV) manufacturing, is reshaping the global supply chain. As geopolitical challenges and shifting trade policies drive companies to seek more efficient, reliable production bases closer to home, Mexico has emerged as a prime near-shoring location for the mobility sector.

At the heart of Mexico’s rise is the United States-Mexico-Canada Agreement (USMCA), which came into effect in 2020. The agreement has provided crucial incentives for manufacturers to relocate or expand operations in Mexico by offering duty-free exports to the U.S. and Canada, as long as specific content rules are adhered to. This, along with Mexico’s favorable geographic proximity, skilled labor force, and competitive wages, has made it an attractive destination for automakers and parts manufacturers seeking to de-risk their supply chains and shorten logistics routes in a post-pandemic world.

The push toward sustainability and the growing adoption of EVs have accelerated the growth of Mexico’s mobility manufacturing sector. OEMs and Tier 1 suppliers have accelerated their investments in Mexicoto develop EV platforms, batteries, and the critical components that power these new technologies. Mexico is already home to several major EV manufacturing plants, producing both finished vehicles and many of the critical components required for the electrification of the automotive industry.

Beyond EVs, Mexico has solidified its position as a leading exporter of vehicles and auto parts globally. In 2023, Mexico was the third-largest exporter of cars in the world, with the majority of exports destined for the U.S. and Canada, thanks to the USMCA. Mexico’s prowess in auto part production has also surged. With robust infrastructure, competitive manufacturing costs, and seamless logistics networks, Mexico is now responsible for producing a significant share of the auto parts used across North America.

Interestingly, while Western automakers and parts manufacturers have traditionally dominated the Mexican landscape, Chinese companies are now becoming significant players in Mexico’s mobility sector. As trade tensions between the U.S. and China have escalated, several Chinese manufacturers are leveraging Mexico’s USMCA benefits by establishing production bases to access the North American market duty-free.

However, the upcoming US electionand recent political developments in Mexico are causing unease among investors.

Former U.S. President Donald Trump has hinted at reviving one of his signature policies: imposing tariffs on imports from Mexico. During his first term, Trump threatened to impose tariffs on a range of Mexican goods, including automobiles, as part of his strategy to renegotiate the NAFTA trade agreement, which ultimately resulted in the USMCA. However, in recent months, Trump has renewed threats of tariffs on Mexican imports if he is re-elected, particularly targeting the automotive sector.

The mere suggestion of tariffs has already sent ripples through the investment community. Tesla has announced they are putting their planned Mexican Gigafactory on hold until after the election.

Equally troubling to investors are developments on the domestic front in Mexico. President Obrador has pushed for controversial amendments to Mexico’s constitution that are expected to weaken the country’s judiciary, centralize more power in the executive branch, and potentially compromise the rule of law.

These amendments have drawn widespread criticism from both domestic and international observers, who argue that weakening judicial independence could have far-reaching consequences for foreign investors. By curtailing judicial independence, President Obrador’s government risks creating an environment where legal disputes, particularly those involving foreign companies, could be subject to political influence.

With these political developments on both sides of the border, it’s possible that Mexico’s rapid growth as a mobility manufacturing hub could experience a slowdown. Thus, Mexico’s automotive and mobility manufacturing sector may be at a crossroads.

We will be discussing these and many other important issues at our Workshop on Manufacturing for Mobility in Mexico.


Althought the agenda is not finalized yet, here is the program so far:
DISCUSSION PANELS

Not Your Father’s Oldsmobile: Modern Manufacturing in Mexico

  • Miguel Casillas, President at SV Links
  • Luis Ricardo Rodriguez, Monarch Global
  • Jacobo González, Index Director (TBC)
(more to come)

Understanding the Policy Framework for EV Manufacturing in Mexico: Is Nearshoring the New Reality?

  • Roberto Arechederra, Secretary of Economic Development – Jalisco
  • Michael Camuñez, Monarch Global
  • Sergio Rios, CCO – Kampus Desarrollos
(more to come)

The Growth of the EV Supply Chain in Mexico

  • Eugenio Grandio, President of the Association for Electromobility in Mexico (TBC)
  • Manuel Montoya, Advisor at Automotive Cluster in Mexico
  • Ponchode los Ríos, Nowports (TBC)

Advanced Manufacturing and the Aerospace Industry

  • Ernesto Sánchez, Seeräuber Automotive
  • Jeronimo Sanchez, HYRSA Aerospace, (TBC)
  • Marco Gonzalez Hagelsieb, Samina (TBC)
(more to come)
Mexican Manufacturing as an Opportunity forFinancial Investors
  • Miguel Martinez, MXO Capital
  • Anil Tammineedi, Angeleno Group (TBC)
  • Enrique Zambrano Jr., Proeza Ventures (TBC)
Discussion Panels & Speakers
As you can see, this is going to be a dynamite program, with a chance to meet many key decision makers and players in the Mexican market all in one day.
For more information or to register, please scan the below QR , using:

Username: friend

PW: 1818
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