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COMMENT: Luxury of low-cost production lures premium OEMs to Mexico

BY IAN HENRY. German premium OEMs will soon make 600,000 upa in Mexico – is a million out of the question?

The US Big Three and the Japanese volume OEMs have long had assembly plants in Mexico. They are supported by an expanding supplier base - NTN, Denso and Bridgestone are just three of the major suppliers to have announced new plants or major expansions in the country in 2014 alone. Hella, Bosch, Mahle-Behr and Freudenberg are also expanding in Mexico, while Kia is rumoured to be considering a plant in the country.

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