According to the latest news, Toyota Motor Corp. plans to source cars from Mazda Motor Corporation’s plant, based in Mexico. The whole process is going to start in 2015 and it indicates clearly that there’s a growing reliance in the Latin America’s production quality, followed by lower costs.
The research conducted by LMC Automotive points out that Mexico’s vehicle output is likely to reach 2.86 million units by the end of 2012. What’s more, Honda Motor Company is building its first big assembly plant, Nissan Motor proceeds with establishing their third factory in that area and Audi’s going to open the country’s first luxury plant there, in 2016.
Mexico is no longer perceived merely as the source of the low-cost labor with more and more automakers investing their funds in Mexico City growing factories. Mexico’s trade agreements, that cover 44 countries, also make the city the attractive export spot to ship cars to South America, Asia, Africa as well as the U.S. and Canada.