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anonymous
2019 Feb 15, 5:30pm
Just How Huge Are Mexico’s Auto Export to the US? How Fast Have they Grown?
GM’s Mexico vehicles now are 23% of its US sales. And the Japanese have massively discovered Mexico’s cheap labor.
The total number of new vehicles exported from Mexico to the US in January rose 9.1% from a year ago to 191,072 vehicles, according to figures compiled by the vehicle manufacturers association AIMA and released by Mexico’s National Institute of Statistics and Geography (INEGI). In the year 2018, total new vehicle exports from Mexico to the US leaped by 9.9% to 2.57 million vehicles, after having already jumped by 9.4% in 2017.
Since 2011, vehicle exports to the US have surged by 93%. During that period the number of vehicles exported to the U.S. from Mexico has gone up every single year, sometimes by double-figure percentages, including 13.9% in 2014.
Since 2011, vehicle exports to the US have surged by 93%. During that period the number of vehicles exported to the U.S. from Mexico has gone up every single year, sometimes by double-figure percentages, including 13.9% in 2014.
During the worst year of this period, 2015, the total number of vehicles sent from Mexico to the U.S. still grew by a 6.3%. Since then, the annual percentage rises have gradually recovered, hitting 7.1% in 2016, 9.4% in 2017 and 9.9% in 2018:
There are two mains reasons why Mexican vehicle exports to the U.S. have almost doubled in the last eight years, from 1.36 million units a year to 2.57 million:
More global car manufacturers have set up shop in Mexico. In 2005, when INEGI began publishing stats on Mexico’s vehicle exports, there were just six large vehicle manufacturers (Chrysler, Ford, General Motors, Honda, Nissan and Volkswagen) producing and exporting cars from Mexico. By 2011 that number had risen to eight, after Fiat and Toyota had joined the fold. Today, the total number is 11, following the recent arrival of Audi, Kia and Mazda.
Some of the biggest manufacturers have significantly expanded their operations in Mexico, where salaries for autoworkers are just a fraction of what they are in the U.S. In 2011 General Motors exported 318,149 vehicles from Mexico to the U.S. By 2018, that had surged by 110% to 666,765, accounting for 23% of GM’s total US sales in 2018.
Fiat-Chrysler has also massively expanded its Mexico operations over the last eight years, increasing its total annual exports to the US by over 200%, to 504,793 units in 2018. Other big movers include Honda and Toyota. Audi, Kia, and Mazda now assemble cars in Mexico but didn’t do so in 2011. Note that Ford is the only automaker whose exports from Mexico to the US actually dropped (-37%) since 2011. Most of what Ford builds in Mexico are cars, and Ford’s car sales in the US have plunged:
Here are some additional observations:
•Audi exported 74,507 SUVs from Mexico to the U.S. in 2018. But over the second half, the monthly totals have waned after hitting an annual peak of 11,214 in August.
•Fiat exported a meager 4,155 units in 2018. The monthly totals have also been on the decline of late, hitting an annual low of just 58 units in January.
•Ford’s exports from Mexico to the US, which have been shrinking for years, accounted for 10% of its US sales, compared to GM, whose Mexico units accounted for 23% of sales in the US.
•Kia exported 141,819 vehicles from Mexico to the U.S. in 2018, though the last few months saw a gradual slowdown in the outflow.
•Nissan’s total production in Mexico for sales around the globe — not pictured in the table — slipped 10% in 2018 to 763,257.
•Toyota makes many of its Tacoma pickups in Mexico for export to the US.
•Japanese automakers in total exported nearly 720,000 vehicles to the U.S. from Mexico in 2018, up 168% from 2011.
For Mexico’s auto industry as a whole, overall exports to the U.S have been slowing (-13%) between December and January, from 218,865 vehicles to 191,072, following a month of virtually zero growth between November and December. Between December and January the total number of light vehicles Mexico exported all over the world also shrank, from 275,000 units to 242,000.
The current global slowdown in auto demand is likely to have an effect given that roughly one out of every five cars Mexico exports are shipped to countries other than the US, including Canada, Europe, China and other parts of Latin America.
The recent reduction in production could also be due to local disruptions: In January — the worst month for vehicle exports — a number of key car-producing States in Central Mexico, such as Puebla and Queretero, suffered the brunt of of the disruption caused by gasoline and diesel shortages resulting from the Mexican government’s war against rampant oil theft. There was also disruption caused by striking maquiladora workers, including in car parts plants, over low pay in the northern state of Tamaulipas and the central Pacific state of Michoacan. Whether these two factors were enough to hamper the flow of finished cars to the U.S. is as yet unclear.
https://wolfstreet.com/2019/02/15/auto-exports-from-mexico-to-the-us-surge-nearly-10/
Well this sure turned out great now didn't it ?
Anyone see any reduction in 2017 and 2018 ? Me neither.
Promises made, promises forgotten until it's time for votes again...
GM’s Mexico vehicles now are 23% of its US sales. And the Japanese have massively discovered Mexico’s cheap labor.
The total number of new vehicles exported from Mexico to the US in January rose 9.1% from a year ago to 191,072 vehicles, according to figures compiled by the vehicle manufacturers association AIMA and released by Mexico’s National Institute of Statistics and Geography (INEGI). In the year 2018, total new vehicle exports from Mexico to the US leaped by 9.9% to 2.57 million vehicles, after having already jumped by 9.4% in 2017.
Since 2011, vehicle exports to the US have surged by 93%. During that period the number of vehicles exported to the U.S. from Mexico has gone up every single year, sometimes by double-figure percentages, including 13.9% in 2014.
Since 2011, vehicle exports to the US have surged by 93%. During that period the number of vehicles exported to the U.S. from Mexico has gone up every single year, sometimes by double-figure percentages, including 13.9% in 2014.
During the worst year of this period, 2015, the total number of vehicles sent from Mexico to the U.S. still grew by a 6.3%. Since then, the annual percentage rises have gradually recovered, hitting 7.1% in 2016, 9.4% in 2017 and 9.9% in 2018:
There are two mains reasons why Mexican vehicle exports to the U.S. have almost doubled in the last eight years, from 1.36 million units a year to 2.57 million:
More global car manufacturers have set up shop in Mexico. In 2005, when INEGI began publishing stats on Mexico’s vehicle exports, there were just six large vehicle manufacturers (Chrysler, Ford, General Motors, Honda, Nissan and Volkswagen) producing and exporting cars from Mexico. By 2011 that number had risen to eight, after Fiat and Toyota had joined the fold. Today, the total number is 11, following the recent arrival of Audi, Kia and Mazda.
Some of the biggest manufacturers have significantly expanded their operations in Mexico, where salaries for autoworkers are just a fraction of what they are in the U.S. In 2011 General Motors exported 318,149 vehicles from Mexico to the U.S. By 2018, that had surged by 110% to 666,765, accounting for 23% of GM’s total US sales in 2018.
Fiat-Chrysler has also massively expanded its Mexico operations over the last eight years, increasing its total annual exports to the US by over 200%, to 504,793 units in 2018. Other big movers include Honda and Toyota. Audi, Kia, and Mazda now assemble cars in Mexico but didn’t do so in 2011. Note that Ford is the only automaker whose exports from Mexico to the US actually dropped (-37%) since 2011. Most of what Ford builds in Mexico are cars, and Ford’s car sales in the US have plunged:
Here are some additional observations:
•Audi exported 74,507 SUVs from Mexico to the U.S. in 2018. But over the second half, the monthly totals have waned after hitting an annual peak of 11,214 in August.
•Fiat exported a meager 4,155 units in 2018. The monthly totals have also been on the decline of late, hitting an annual low of just 58 units in January.
•Ford’s exports from Mexico to the US, which have been shrinking for years, accounted for 10% of its US sales, compared to GM, whose Mexico units accounted for 23% of sales in the US.
•Kia exported 141,819 vehicles from Mexico to the U.S. in 2018, though the last few months saw a gradual slowdown in the outflow.
•Nissan’s total production in Mexico for sales around the globe — not pictured in the table — slipped 10% in 2018 to 763,257.
•Toyota makes many of its Tacoma pickups in Mexico for export to the US.
•Japanese automakers in total exported nearly 720,000 vehicles to the U.S. from Mexico in 2018, up 168% from 2011.
For Mexico’s auto industry as a whole, overall exports to the U.S have been slowing (-13%) between December and January, from 218,865 vehicles to 191,072, following a month of virtually zero growth between November and December. Between December and January the total number of light vehicles Mexico exported all over the world also shrank, from 275,000 units to 242,000.
The current global slowdown in auto demand is likely to have an effect given that roughly one out of every five cars Mexico exports are shipped to countries other than the US, including Canada, Europe, China and other parts of Latin America.
The recent reduction in production could also be due to local disruptions: In January — the worst month for vehicle exports — a number of key car-producing States in Central Mexico, such as Puebla and Queretero, suffered the brunt of of the disruption caused by gasoline and diesel shortages resulting from the Mexican government’s war against rampant oil theft. There was also disruption caused by striking maquiladora workers, including in car parts plants, over low pay in the northern state of Tamaulipas and the central Pacific state of Michoacan. Whether these two factors were enough to hamper the flow of finished cars to the U.S. is as yet unclear.
https://wolfstreet.com/2019/02/15/auto-exports-from-mexico-to-the-us-surge-nearly-10/
Well this sure turned out great now didn't it ?
Anyone see any reduction in 2017 and 2018 ? Me neither.
Promises made, promises forgotten until it's time for votes again...
2
HeadSet
2019 Feb 15, 5:33pm
HeadSet
2019 Feb 15, 5:33pm
With Mexico, Trump may be more about stopping imported parts from China to Mexico being sold in the USA as North American in origin.
Trump And International Trade
I’m carefully observing what Donald Trump is doing about his campaign promises to stop foreign trading partners from taking advantage of us. He seems to focus all his attention on China and Mexico. China is very wealthy and very powerful. If Trump increased import duties on Chinese goods to 45%, China would retaliate in many ways. Some 1,800,000 US jobs tied to trade with China might go. Supply lines for many products will be disrupted.
Mexico is a different case. Trump is indignant over the $60-billion dollar trade deficit that we have with Mexico. He focuses on the Mexican auto manufacturing sector. Depending on who you talk to, Mexico has an auto manufacturing industry that is between #8 in the world and #4 in the world. Mexico produced some 2.9 million motor vehicles in 2015. 70% of these vehicles go to the USA (Roughly 2,030,000) In 2015 Mexico produced some $81.5 billion in auto parts. If we apply the same 70% ratio, we see auto parts exported to the US with a value of $56.7 billion. Trump wants to put a 30%+ import duty on these autos and parts. Effectively the Mexican auto industry could no longer sell in the US. They would not have another place where they could start selling all these vehicles and parts. Automobile manufacturing plants owned by the likes of General Motors, Nissan and Volkswagen would close. This would cause large write-offs and financial losses to these automobile companies. US investors in these automobile companies would lose large amounts of money. Some 1.1 million US jobs are tied to trade with Mexico. Many of these jobs would be lost.
There would be one other unintended consequences. Suddenly, the US auto market would have some 2 million less vehicles to sell and some $56.7 billion auto parts less to sell. In economics, we have the law of supply and demand. Where demand is strong and supply drops, prices go up. It would take up to five years to build auto manufacturing plants in the US and auto parts manufacturing plants to make up for the lost Mexican imports. Estimates are that prices for autos and auto parts would go up as much as 25%.
I have heard comments that Trump will also stop the flow of tequila, tomatoes, etc. I doubt that.