GENERAL SITUATION IN MEXICO
Weekly Review I August 21 2024
RELEVANT NEWS INDUSTRIES
EV:
JAC Motors plans to improve its after-sales service in Mexico in response to upcoming competition from new electric vehicle tariffs starting in October. The company, which has been in Mexico for seven years, aims to stand out through enhanced service quality and customer support. Isidoro Massri, Director of JAC Mexico, highlighted the importance of after-sales support and spare parts availability, as these will become crucial for customers. To achieve this, JAC will create a Central Quality Group to oversee all service aspects. With the current tariff-free importation decree expiring soon, JAC believes the key to success will be delivering excellent after-sales support to differentiate itself from competitors.
SOURCE: MEXICO BUSINESS NEWS
RELEVANT NEWS INDUSTRIES
AUTOMOTIVE
Stellantis and Foxconn have announced a joint venture, SiliconAuto, which will start operations in 2026 and focus on designing and producing automotive-specific semiconductors. This venture will supply semiconductors for Stellantis’ new ‘STLA Brain’ software architecture and other electronic components, as well as for Foxconn and other clients. The move aims to address the automotive industry’s growing need for reliable semiconductor supplies, particularly for electric vehicles. SiliconAuto, headquartered in the Netherlands, follows an agreement between the two companies from December 2021 and is part of a broader partnership that includes Mobile Drive, which develops connected car technologies.
SOURCE: MEXICO BUSINESS NEWS
AEROSPACE:
The Aerocluster of Queretaro, led by General Director José Antonio Velázquez, is working to enhance the role of small and medium-sized enterprises (SMEs) in the aerospace sector. The cluster aims to improve collaboration between large aerospace firms and smaller suppliers, which is crucial as the industry recovers from the COVID-19 pandemic’s impact. Key strategies include providing financial support, training on aerospace standards, and helping SMEs access new markets. Recovery signs include increased hiring and new business inquiries, with sales reaching $1.4 billion in 2021. Employment in the sector, which fell from 12,000 to under 8,500 during the pandemic, is expected to return to pre-pandemic levels by 2023. The Aerocluster currently includes about 63 member companies.
SOURCE: MEXICO BUSINESS NEWS
NEWS BY STATE
BAJA CALIFORNIA
In Baja California, the Secretary of Economy and Innovation, Kurt Honold Morales, along with educational representatives from local universities and research centers, met with Qualcomm executives in San Diego. The visit aimed to explore collaboration opportunities between Qualcomm and local educational institutions to enhance the region’s semiconductor industry. Qualcomm, seeking to strengthen its presence in Baja California, discussed its needs and talent requirements with the visiting delegation. The meeting included a tour of Qualcomm’s facilities and highlighted the importance of aligning educational programs with industry needs. Rodolfo Andrade Pelayo from SEI also presented the state’s strategy for developing talent and supporting the semiconductor sector.
SOURCE: MEXICO NOW
The government of Baja California, in collaboration with the University of Arizona, has implemented a program to train engineers and technicians in semiconductors. Additionally, it is working with Siemens to have over 100 teachers specialize in Artificial Intelligence (AI). The goal is to evolve from a cost center to a value-added one, incorporating talent significantly.
SOURCE: EL ECONOMISTA
SONORA
Sonora has attracted over $15.48 billion in investments across various sectors, including new energy, manufacturing, industrial infrastructure, and liquefaction plants. Notably, $15 billion was invested by Saguaro Energía de México Pacific Limited at Puerto Libertad to enhance energy infrastructure. In renewable energy, the state has developed significant solar projects: Parque Solar Tastiota in Hermosillo, with a $137.5 million investment and a capacity of 100 MW from 298,500 solar panels; and Parque Solar Akin, also in Hermosillo, with a $112 million investment and a capacity of 130 MW from 390,000 panels. Additionally, ASK Industries invested $33 million, and the Vie Verte Hermosillo 2.0 industrial park has been established in Hermosillo.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
NUEVO LEON
The government of Nuevo León has confirmed that Volvo will build a new truck plant in the state, with an official announcement scheduled for August 22. The plant, located in Ciénega de Flores, will cover 160,000 square meters and produce heavy vehicles for Volvo and Mack. This expansion strengthens Nuevo León’s automotive industry presence, joining existing manufacturers like Kia Motors and Navistar. Volvo’s investment includes $73 million in facility upgrades and an additional $80 million for future production.
SOURCE: EL ECONOMISTA
CHIHUAHUA
The Ministry of Innovation and Economic Development (SIDE) of Chihuahua, in partnership with Mexico Now, is hosting the Automotive & Aerospace Nearshoring Summit 2024 on September 5-6 at the Convention and Exhibition Center in Chihuahua. The summit, now in its third edition, will focus on fostering collaboration between local suppliers and national/ international buyers through B2B meetings, presentations, and showcases of key industry components. SIDE head Ulises Fernandez emphasized the event’s role in providing local companies with opportunities to access global supply chains, learn industry trends, and attract investment. Mexico Now’s Sergio Ornelas anticipates over 3,000 attendees and 1,500 companies participating. The summit will also include tours of Bell and Ford plants in Chihuahua.
SOURCE: MEXICO NOW
NEWS BY STATE
COAHUILA
During a work visit to Texas, Coahuila Governor Manolo Jiménez Salinas inaugurated the Pro Coahuila Office in Austin to enhance economic and tourism ties between Coahuila and the U.S. Governor Jiménez Salinas emphasized leveraging nearshoring to attract investments and tourists. The office, led by Gloria Gutiérrez, will focus on prospecting high-impact projects, attracting new investments, and supporting existing ones. The inauguration included a meeting with Glenn Hamer, President of the Texas Business Association, and other business leaders, highlighting Coahuila’s competitive advantages. The office aims to strengthen Coahuila’s presence in the global market and boost its attractiveness as an investment destination.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
QUERETARO
The automotive industry in Querétaro is projected to need 1,000 new workers over the next two months, according to the Querétaro Automotive Cluster. This demand is driven by a shortage of operational staff, who experience high turnover rates, impacting company operations. Daniel Hernández Camacho, the cluster director, noted that while the overall employee turnover is around 3%, it is significantly higher for unskilled and operational roles. This hiring demand reflects the industry’s ongoing challenges and economic activity.
SOURCE: EL ECONOMISTA
NEWS BY STATE
CDMX
Mexico received USD 31.096 billion in Foreign Direct Investment (FDI) in Q2 2024, with Mexico City accounting for 46% of the total (USD 14.186 billion), according to the Ministry of Economic Development of Mexico City (Sedeco). This marks a historic first-half total of USD 26.229 billion for the city, reflecting strong economic dynamics. The main sources of FDI were the U.S., Canada, Spain, Germany, and Japan, with key sectors being manufacturing, financial
services, and mass media. The presidental administration of AMLO will end its term with a historic USD 69.824 billion in FDI, highlighting international confidence and Mexico’s role in “nearshoring.”
SOURCE: LA JORNADA
NEWS BY STATE
STATE OF MEXICO
Business leaders in the Valley of Mexico plan to ask new legislators to revisit the Circular Economy Law, which the business sector has promoted since 2023 to tackle significant environmental issues. The law aims to promote a model of production and consumption focused on maximizing the use of materials and products through sharing, reusing, and recycling. Sergio Álvarez Calderón, President of the Circular Economy Commission of the Industrial Union of the State of Mexico (UNIDEM), emphasized the importance of reviving this initiative to address the generation of 17,000 tons of daily waste, with the potential to utilize at least 70 percent of it. Although the Circular Economy Law was presented to the legislature in February 2023 with significant support from UNIDEM
entrepreneurs, it was not approved and remains under committee review, with hopes for its revival in the next legislative session. Álvarez Calderón underscored that the circular economy is a key priority for UNIDEM as a corporate social responsibility initiative, particularly in addressing plastic waste by reducing its use rather than eliminating it entirely. He also mentioned that representatives from the Mexican Association of the Plastic Recycling Industry (AMIRPAC) encouraged businesses to adopt sustainable packaging and incorporate up to 25 percent recycled plastic in non-food packaging, such as bottles for shampoo and detergents.
SOURCE: EL SOL DE TOLUCA
INVESTMENT NEWS
NORTH
SIEMENS
With an investment of 58.7 million dollars and the creation of 450 jobs, SIEMENS conducted the opening ceremony in García, Nuevo León.
MAXION COMPONENTS
The Brazilian automotive supplier announced an investment of 69.4 million dollars to expand operations in Castaños, Coahuila. The potential creation jobs will be 500.
GIMSA
GIMSA announced the investment of 90 million dollars to build an industrial park located in Monclova, Coahuila. No number of jobs shared .
GOOD MARK INDUSTRIAL
With the initial investment of 12 million dollars and the potential creation of 1,080 jobs, the Chinese plastics company conducted the opening ceremony in Torreón, Coahuila.
CENTRAL MEXICO
CEMENTOS CRUZ AZUL
The Mexican cement supplier announced the investment of 8.5 million dollars to expand operations in Tepezalá, Aguascalientes. It will add jobs 100 new jobs.
KASAI
The Japanese automotive supplier opened a new office center León, Guanajuato. It will add jobs 100 new jobs. No investment amount shared.
SOURCES : MEXICO NOW, MEXICO INDUSTRY, CLUSTER INDUSTRIAL
LEGISLATIVE CHANGES AND INITIATIVES
LABOR
• HIDALGO: DECREE ISSUING THE LAW OF SOCIAL AND SOLIDARITY ECONOMY OF THE STATE
Presented by: Executive Power of the State of Hidalgo
Purpose: Without prejudice to the rights and prerogatives established by the laws related to different associative forms, the Organizations of the Sector are recognized for entering into contracts, acts, operations, and agreements among themselves or with private and public sector companies, whenever necessary or convenient for their purposes and social objectives. In cases where private companies face labor-management conflicts deemed irreconcilable, the competent authorities must consider the workers, through existing or newly established organizations or companies in the sector, to be involved in the transfer of the company’s assets, ensuring that these companies continue operating efficiently and profitably.
Status: 2024-08-19 - Published in the Official Gazette.
LEGISLATIVE CHANGES AND INITIATIVES
CYBERSECURITY
• INITIATIVE WITH A DRAFT DECREE FOR THE ENACTMENT OF THE FEDERAL LAW ON CYBERSECURITY AND DIGITAL TRUST AND THE REFORM AND ADDITION OF VARIOUS PROVISIONS REGARDING CYBERCRIMES
Presented by: Sen. Alejandra Lagunes Soto Ruiz (LNal - PVEM)
Purpose: To establish a regulatory framework for the use of information and communication technologies (ICTs) and emerging technologies in Mexico, with the aim of ensuring cybersecurity and promoting trust in their use. Key components include:
• National System for Cybersecurity and Digital Trust: A coordinating body for cybersecurity efforts, aiming to build a national policy that promotes security, risk management, and digital culture while respecting human rights in cyberspace.
• National Cybersecurity Council: A body to develop and articulate public policy on cybersecurity and digital data security.
• National Institute for Innovation and Training in Digital Technologies and Cybersecurity: Responsible for protecting digital infrastructure and responding to cyber incidents.
• National Cybersecurity Strategy: A three-year strategy that must be reviewed and updated periodically, promoting a shared responsibility model involving various stakeholders to ensure effective cybersecurity and protect digital systems.
• Cybercrime Definition and Penal Reforms: Defines cybercrime and mandates updates to penalties in the Federal Penal Code to match the severity of cyber offenses, enhancing law enforcement capabilities.
Status: 2024-08-14 - Published in the Parliamentary Gazette.
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