11202017Mon
Last updateFri, 17 Nov 2017 11am

Is Mexico’s car boom running on empty?

According to Bloomberg News, the Mexican automobile boom is showing signs of slowing down, with production falling for the past four months. 

The business news agency cites reduced demand in the United States and Canada as the major reason for the decline.  Around 70 percent of vehicles assembled in Mexico are destined for export – the majority to the United States.

Mexico has attracted around $US26 billion in investment from automakers in the past five years, with several new plants slated to open soon, including Kia, Nissan and Toyota.  Automobile production in Mexico in 2015 totaled 3.4 million cars, a figure industry analysts say could rise to five billion by 2020.

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