GENERAL SITUATION IN MEXICO
Weekly Review I September 18, 2024
RELEVANT NEWS INDUSTRIES
SEV, a Mexico-based automaker with Chinese roots, has been chosen to supply 100,000 electric vehicles (EVs) to DiDi’s ride-hailing platform in Mexico as part of a US$58 million investment aimed at enhancing sustainable mobility. This partnership, mirroring a successful strategy in China where EVs account for 57% of ride-hailing trips, will see the fleet gradually deployed by 2030. SEV’s General Director, Juan Manuel Cerdeira, emphasized the company’s commitment to sustainable energy and the production of high-quality EVs in Mexico, supported by a new manufacturing facility in Durango. The initiative is expected to significantly reduce operational costs for drivers—by up to 60%—and cut CO₂ emissions by 500,000 tons over the next decade, while also providing infrastructure solutions like charging stations.
SOURCE: MEXICO BUSINESS NEWS
In a major stride toward environmental sustainability, Mexico’s Ministry of Communications and Transport (SICT) introduced new identification plates for electric vehicles, as announced by Deputy Minister Rogelio Jiménez. Accompanied by key officials, including Laura Nohémi Muñoz and Lorena Martínez, the initiative underscores Mexico’s commitment to reducing its environmental impact and promoting the transition to electric vehicles. Muñoz emphasized the importance of continued efforts to decarbonize federal transport and meet mobility needs sustainably. Martínez highlighted the transformative potential of the new plates, which offer benefits like exemptions from emission certificate requirements, thereby encouraging the adoption of electric vehicles and positioning Mexico as a leader in eco-friendly transport.
SOURCE: MEXICO BUSINESS NEWS
RELEVANT NEWS INDUSTRIES
Chevrolet is advancing its electromobility strategy in Mexico with the launch of the Blazer EV, an SUV manufactured at GM’s Ramos Arizpe plant in Coahuila. The Blazer EV features a modern design and advanced technology, built on General Motors’ Ultium battery platform. It is equipped with an 85kWh battery, offering significant range and fast-charging capabilities—allowing a full charge in just over eight hours with a Level 2 charger or up to 120 kilometers in ten minutes with a Level 3 charger. Paco Garza, President of GM Mexico, emphasized that the Blazer EV will enhance the brand’s leadership in the rapidly growing SUV segment. The RS version will be available in five colors starting in November, priced at $1,179,900. The Ramos Arizpe facility has become a key hub for electric vehicle production in Latin America, also manufacturing the Equinox EV and soon the Cadillac OPTIQ.
SOURCE: MEXICO INDUSTRY
AUTOMOTIVE
Nissan Mexicana has officially begun production of the new Nissan Kicks 2025 crossover at its Aguascalientes plant, marking the company’s achievement of 16 million cars manufactured in Mexico. During the launch event, CEO Rodrigo Centeno highlighted this milestone as a demonstration of Nissan’s vision and commitment to innovative mobility solutions. The production startup and the significant manufacturing milestone reflect the talent and strength of the company’s workforce in Mexico. In 2022, Nissan announced a US$36.4 million investment to enhance production capabilities, acquiring new equipment for casting, machining, and assembly processes.
SOURCE: MEXICO NOW
RELEVANT NEWS INDUSTRIES
The AIAG Mexico Automotive Forum 2024, organized by the Automotive Industry Action Group (AIAG), Redcam, and the Metropolitan Automotive Cluster, brought together executives, experts, and key suppliers to discuss emerging trends, challenges, and opportunities in the automotive sector amid global technological and regulatory changes. The event featured a notable panel with OEM representatives from companies like Ford, Stellantis, and Nissan, who shared insights on quality impacts on warranty claims. Discussions also addressed updates to the International Material Data System (IMDS) regarding sustainability regulations, the risks associated with electric vehicle battery storage, and new regulatory requirements like APQP-CP and IATF 16949. The forum emphasized the importance of risk assessment in supply chains, particularly concerning forced labor compliance, and highlighted innovations in operational efficiency within warehouses. Concluding with a keynote on the role of academia in shaping industry talent and a networking cocktail, the event reinforced the need for collaboration and adaptation to ensure Mexico’s pivotal role in the global automotive supply chain.
SOURCE: MEXICO INDUSTRY
AEROSPACE
In the next three years, the aerospace industry in Querétaro is expected to need around 1,500 skilled technicians. In response, the Querétaro Aerocluster and the Scientific and Technological Studies College of Querétaro (CECyTEQ) have agreed to enhance the training of specialized technicians to meet the demand in the aerospace sector and other strategic industries. José Antonio Velázquez, director of the Aerocluster, highlighted the college’s innovative approach to adopting the CONOCER competencies, a national certification system ensuring graduates have the necessary technical skills for a competitive industrial environment. Both organizations will align industry needs with CECyTEQ’s educational offerings to provide young people with the best training and address the evolving requirements of the aerospace sector. David Chaparro Aguilar, director of CECyTEQ, noted their intention to strengthen the regional aerospace ecosystem by collaborating with the Aerocluster and over 63 member companies to implement a Dual Education Program that develops competencies recognized by CONOCER.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
BAJA CALIFORNIA
The Baja California Aerospace Cluster strengthened its partnerships with the logistics sector by attending Expo Logex 2024, where it engaged in business meetings, conferences, and networking sessions. Key companies such as DPH Technical, Eson Multiwin, and GAE Aerospace were present, facilitating new connections to enhance aerospace manufacturing and supply chains. Tomás Sibaja, president of the Cluster, emphasized the strategic importance of the forum for fostering B2B business opportunities in specialized supply. Organized by RX Global, Expo Logex 2024 successfully arranged 2,500 business meetings involving over 400 logistics-related companies, highlighting its role in connecting suppliers and buyers in the logistics and transportation sectors.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
NUEVO LEON
VEMO, a leading Mexican cleantech company in clean mobility, has announced the installation of five new charging stations in Nuevo León, reinforcing its commitment to promoting electromobility in Mexico and contributing to the development of a regional electromobility hub. The charging points are strategically located in Monterrey’s metropolitan area at key sites such as Torre Acacia, Hospital Zambrano, ITESM EGADE, Universidad Autónoma de Nuevo León, and Tec de Monterrey. Carlos Levy, Head of the VEMO Charging Network, emphasized that Nuevo León is becoming a strategic hub for clean mobility, facilitating the transition to a sustainable ecosystem.
In August, electric vehicle sales in Nuevo León surged to 112 units, a 69.7% increase compared to the previous year, indicating a growing interest in clean technology.
VEMO’s charging network, which includes 550 chargers nationwide, will be accessible via the “Watts by VEMO” app, allowing users to locate chargers and manage payments efficiently. Levy also highlighted VEMO’s efforts to address range anxiety and support the goal of 100% electric vehicle sales in Mexico by 2035, as set by the Electro Mobility Association (EMA).
SOURCE: CLUSTER INDUSTRIAL
NEWS BY STATE
CHIHUAHUA
The Ministry of Innovation and Economic Development (SIDE) of Chihuahua introduced a strategy aimed at fostering economic growth to business, social, and academic leaders, emphasizing collaboration among public, private, and academic sectors. During a session with the Regional Economic Development Council (CODER) in Chihuahua City, Ulises Fernández Gamboa, head of SIDE, discussed the need for a cohesive development policy that promotes investment while identifying strategic areas for specialization and talent development. Key topics included the establishment of a State Fund for Science, Technology, and Innovation, which will initially invest $80 million to support projects that create jobs and enhance competitiveness. Fernández highlighted the importance of unified regional strategies to strengthen the economic ecosystem and reiterated the commitment to implementing public policies focused on sustainable growth and innovation.
SOURCE: MEXICO NOW
COAHUILA
The French-Mexican Chamber of Commerce and Industry (CCI France México) organized a business mission in Coahuila to explore economic opportunities and strengthen partnerships between French and Mexican companies, focusing on industrial innovation and sustainable development. The mission began in Torreón with discussions on the economic potential of the La Laguna region, highlighting investment and collaboration opportunities. The delegation then visited the vineyards of CASA Madero and Parvada in Parras, emphasizing the area’s viniculture and its potential for attracting tourism investments. In Saltillo, they toured SAINT-GOBAIN’s facilities to learn about technological innovations and visited BIC’s factory to discuss the company’s growth and innovation focus. Throughout the mission, the success of French businesses in Coahuila was highlighted, opening new avenues for collaboration and emphasizing the importance of economic exchanges and tourism for sustainable development. CCI France México reaffirmed its commitment to supporting French companies in Mexico and enhancing economic ties between the two nations.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
QUERETARO
According to forecasts from the Secretaría de Desarrollo Sustentable (Sedesu), the value of exports from Querétaro could reach $19 billion by the end of 2024, maintaining the growth trend observed in the first quarter. This projection represents a 4.3% increase from the $18.2 billion achieved in 2023, as reported by the Instituto Nacional de Estadística y Geografía (Inegi). In the first quarter of 2024, export sales totaled $4.5 billion, reflecting a 4.1% year-on-year increase. Marco Antonio Del Prete Tercero, head of Sedesu, noted that while growth is more moderate compared to previous years, the state has strengthened its presence in foreign markets. Key export sectors include transportation equipment, which contributed 50.3% of total export value, followed by electrical accessories, machinery, electronic equipment, and plastics. The United States remains the primary destination for Querétaro’s exports, accounting for 82.4% of sales in 2023. Other notable markets include Canada (5.1%), the United Kingdom (1.4%), and Brazil (1%).
SOURCE: EL ECONOMISTA
NEWS BY STATE
CDMX
Qualtrics, a U.S. technology company, announced a USD $200 million investment over the next five years to establish a technology hub in Mexico City. CEO Zig Serafin highlighted Mexico’s talent, geographical position, and potential for market trend insights as key factors in the decision. Despite geopolitical and economic challenges, Serafin expressed confidence in the Mexican market’s ability to support their expansion in Latin America.
SOURCE: MILENIO
STATE OF MEXICO
Political uncertainty due to government changes at the federal and local levels has become a key factor potentially hindering economic growth in the State of Mexico over the next six months. This is linked to delays in public spending on programs and infrastructure. Insecurity, corruption, and impunity follow as other major concerns. The Bank of Mexico’s April-June 2024 Regional Economies Report, covering the central region (State of Mexico, Mexico City, and surrounding states), highlights “internal political uncertainty” as the main factor affecting economic growth, surpassing inflation, which remains the primary concern in other regions. Local government transitions in Mexico City and the State of Mexico are delaying public infrastructure projects, and business leaders report that security issues are disrupting business operations.
SOURCE: MONITOR FINANCIERO
INVESTMENT NEWS
NORTH
FERMACA NETWORK
With an investment of 3.5 billion dollars, Fermaca Network will build a data center and is expected to generate over 3,500 jobs in Durango.
SAFRAN
Safran Aerosystems has announced an investment of 6 million euros in Chihuahua, which will create 300 high-value jobs in the state.
INTRETECH
The Chinese company Intretech has chosen Nuevo León as the strategic point to begin operations in Mexico. With an investment of 60 million dollars and the creation of 1,500 jobs, the plant located in Apodaca will begin operations in 2025.
SOURCES : MEXICO NOW, MEXICO INDUSTRY, CLUSTER INDUSTRIAL
LEGISLATIVE CHANGES AND INITIATIVES
WATER
• MEXICO CITY: INITIATIVE TO REFORM AND ADD VARIOUS PROVISIONS TO THE LAW ON THE RIGHT TO ACCESS, USE, AND SANITATION OF WATER IN MEXICO CITY, REGARDING RAINWATER HARVESTING SYSTEMS
Presented by: Local Representative Paula Alejandra Pérez Córdova (CDMX - PVEM)
Purpose: Establish that rainwater harvesting, and reuse systems must be installed in all public and private buildings, commercial establishments, and residential homes in Mexico City.
Status: 2024-09-10 - To be referred to the corresponding committee.
LABOR
• MEXICO CITY: INITIATIVE TO ADD A SECOND PARAGRAPH TO CLAUSE 3; AND ADD SECTION F) TO CLAUSE 4, BOTH IN SECTION B OF ARTICLE 10 OF THE POLITICAL CONSTITUTION OF MEXICO CITY, REGARDING DIGITAL DISCONNECTION
Presented by: State Representative Ana Luisa Buendía García (CDMXMORENA)
Purpose: Establish that all workers have the right to digital disconnection, in accordance with the Federal Labor Law.
Status: 2024-09-10 - To be forwarded to the corresponding committee.
LEGISLATIVE CHANGES AND INITIATIVES
ENVIRONMENT
• JALISCO: INITIATIVE TO ISSUE THE CIRCULAR ECONOMY LAW FOR THE STATE OF JALISCO AND ITS MUNICIPALITIES
Presented by: Local Representative Laura Gabriela Cárdenas Rodríguez (Jalisco - MC)
Purpose: Establish principles and tools for implementing circular economy policies in the state. Promote collaboration with the private sector for shared responsibility and efficient value chain integration.
Define key concepts such as zero waste and circular economy criteria.
Offer market and fiscal incentives to encourage adoption of circular economy principles, enhance resource efficiency, and improve waste management.
Status: 2024-09-13 - Initiative referred to the Committee for review.
• GUANAJUATO: REPORT ON THE LAW FOR INTEGRAL MANAGEMENT AND CIRCULAR ECONOMY OF WASTE IN THE STATE AND MUNICIPALITIES OF GUANAJUATO
Presented by: Environment Committee
Purpose: Encourage economic development by supporting actions that align economic activities and value chains with circular economy principles.
Define key concepts such as zero waste, circular economy waste management plans, shared responsibility, and eco-design.
Implement fiscal incentives and economic instruments to support individuals and entities that comply with circular economy standards in their production and distribution processes.
Require individuals or entities involved in packaging and containers in Guanajuato to submit a Waste Management Plan with a circular economy focus for registration.
Status: 2024-09-12 - Approved, forwarded to the State Executive.
PRODENSA INSIGHTS
MAXIMIZE EFFICIENCY WITH CONTRACT LOGISTICS IN NEARSHORING
In today’s competitive manufacturing landscape, contract logistics offers manufacturers, particularly those nearshoring, an efficient way to manage logistics. By outsourcing tasks like warehousing, transportation, and inventory management to third-party logistics (3PL) providers, businesses can focus on core operations while boosting service levels. Key advantages include reduced lead times, improved customer service, and tax benefits through the IMMEX program. While ideal for export-oriented companies, contract logistics is not suited for businesses seeking extensive value-added manufacturing operations. Discover how contract logistics can optimize your supply chain and enhance your presence in Mexico.
UNDERSTANDING REPSE: A KEY TO COMPLIANCE IN MEXICO
NAVIGATING REPSE: A KEY TO SUCCESS IN MEXICO’S DYNAMIC BUSINESS LANDSCAPE
Mexico offers vast opportunities for local and international businesses, but understanding its regulatory environment is crucial. One important regulation is REPSE (Registro de Prestadoras de Servicios Especializados u Obras Especializadas), part of the 2021 labor reform. REPSE aims to regulate outsourcing, protect workers’ rights, and ensure fair labor practices. Businesses that provide specialized services must register to remain compliant, avoid penalties, and maintain credibility. This guide breaks down REPSE’s purpose, compliance requirements, and how understanding it can enhance your business’s competitiveness in Mexico.
REPSE, the Registry of Providers of Specialized Services or Specialized Works, was introduced in 2021 to regulate subcontracting practices in Mexico. Its main goal is to protect workers’ rights and ensure fair labor practices. Companies offering specialized services outside of their clients’ core business must register to comply with Mexico’s labor law. The application process involves submitting proof of tax and social security compliance, along with detailed service descriptions. REPSE certification lasts for three years, and renewals must be processed three months before expiration to remain compliant.