International Carmakers Will Continue To Be Drawn

In what can be seen as a further move towards increasing localisation of auto production in Mexico, Germany's Volkswagen (VW) is reportedly calling on parts makers to set up operations in proximity to its manufacturing facility in Puebla. While the low cost of manufacturing in Mexico is undoubtedly the key attraction for foreign firms stepping up production in the country, BMI points out that European carmakers are becoming increasingly wary of the risks associated with euro exchange rate fluctuations forcing them to resort to local sourcing or component imports based in dollars.

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