GENERAL SITUATION IN MEXICO
Weekly Review I December 11, 2024
RELEVANT NEWS INDUSTRIES
AEROSPACE
Mexico’s aerospace industry, prioritized under Claudia Sheinbaum’s government, will receive new incentives to support its rapid growth and advanced technological activities. Marcelo Ebrard, Secretary of Economy, emphasized the sector’s importance in fostering sophisticated industrial ecosystems. With over 300 companies producing components for aircraft, satellites, and related technologies, regions like Chihuahua, Querétaro, and Baja California lead in high-tech manufacturing. In 2023, aerospace exports reached a record $9.5 billion, drawing increased attention from the U.S. The industry
is also boosting local supply chains, as seen in regions like Reynosa, Tamaulipas, and McAllen, Texas, where companies are partnering with major players such as SpaceX.
SOURCE: MEXICO NOW
RELEVANT NEWS INDUSTRIES
AUTOMOTIVE
The Mexican Automotive Industry Association (AMIA) reported the sales of hybrid, plug-in hybrid, and electric vehicles for November 2024, based on data from the National Institute of Statistics and Geography (INEGI). In November, 12,147 units were sold, accounting for 8.2% of total vehicle sales. This marks the 19th consecutive month of growth for these vehicles in the Mexican market. The sales included 9,551 hybrids, 1,717 electric vehicles, and 879 plug-in hybrids. From January to November 2024, 108,943 vehicles with these technologies were sold, representing a 70.2% increase compared to the same period in 2023.
SOURCE MEXICO INDUSTRY
Volkswagen is considering moving Golf production from its main plant in Wolfsburg to Mexico as part of its ongoing evaluations for future plant operations. However, this option is not currently seen as the most likely outcome. The company is facing a crisis, with collective bargaining negotiations taking place in Wolfsburg regarding cost reductions, including potential wage cuts and plant closures. The relocation of Golf production is one of several options being considered, with other possibilities including a plant in Poland. This is all part of Volkswagen’s broader strategy to reduce costs while ensuring future investment in new models, including electric vehicles. The company has prepared for the EU’s upcoming ban on combustion engines in 2035, which may lead to a shift in production priorities.
SOURCE: BLUE NEWS
NEWS BY STATE
BAJA CALIFORNIA
At the California-Mexico Business Forum, Baja California’s Secretary of Economy and Innovation, Kurt Honold Morales, emphasized the strong relationship with the United States, particularly with California, and the opportunities for collaboration between Baja California and Los Angeles businesses. The event, held on December 3-4, featured discussions on bilateral relations, nearshoring, cross-border financing, innovation, education, and sports as economic drivers. Honold showcased Baja California’s investment potential, highlighting infrastructure projects like border crossings and the Port of Punta Colonet, as well as talent development initiatives in semiconductors, electromobility, and life sciences. Key representatives from sports, education, and business sectors participated, underscoring the state’s strategic focus on innovation and cross-border collaboration.
SOURCE: MEXICO NOW
With a $1.1 billion investment, Grupo Valcas is spearheading an ambitious project in northern Ensenada, developing a 500-hectare park that includes a 350-hectare industrial area and a 150-hectare tech park. The initiative aims to boost regional economic growth, create around 10,000 jobs, and foster collaboration with academic institutions such as Cicese, UABC, ITE, and Cetys, which will provide specialized services. The project, expected to take 5 to 10 years, seeks to attract tech companies and establish a specialized fiscal area while addressing water needs through options like desalination. Positioned near Bajamar, it complements rather than competes with Tijuana’s industrial parks, reflecting Grupo Valcas’s commitment to transforming Baja California’s economy and strengthening industry-academia ties.
SOURCE CLUSTER INDUSTRIAL
NEWS BY STATE
SONORA
Sonora has solidified its position as a national leader in the semiconductor industry by becoming the first Mexican state to receive certification in this field. This milestone, achieved through collaboration between the state government, industry, and educational institutions, aims to enhance employability, competitiveness, and economic growth in the region. The establishment of the Semiconductor Competency Management Committee, linked to the Sonora Sustainable Energy Plan, represents a strategic step toward building a knowledge-driven economy centered on semiconductors and electromobility. Governor Alfonso Durazo emphasized the initiative’s role in fostering innovation and sustainability, with programs designed to train and certify specialists, particularly through local universities. This integrated strategy not only boosts workforce development but also positions Sonora as a hub for renewable energy and advanced technology, laying the foundation for a robust tech ecosystem and sustainable regional development.
SOURCE MEXICO INDUSTRY
NEWS BY STATE
COAHUILA
The government of Coahuila conducted an economic promotion tour in Italy, holding strategic meetings with automotive industry leaders to showcase the region’s competitive advantages in vehicle, autoparts, and engine manufacturing. Governor Manolo Jiménez Salinas met with Stellantis-FIAT executives to discuss new investment opportunities, highlighting their strong partnership through the Saltillo plant, which produces HEMI and Pentastar engines. He also engaged with the Italian National Automotive Industry Association, representing 470 companies, to promote Coahuila’s economic stability, top-tier infrastructure, and skilled workforce. Additionally, the delegation met with Draxton, a Coahuila-based company excelling in European markets with components for brake and powertrain systems. These efforts underline Coahuila’s commitment to attracting foreign investment and solidifying its position as a global leader in the automotive sector.
SOURCE: MEXICO INDUSTRY
CHIHUAHUA
The Faculty of Engineering (FING) at the Autonomous University of Chihuahua (UACH) and PROESMMA, a leader in engineering and manufacturing services, have signed a collaboration agreement to bridge academia and industry. The partnership focuses on joint projects in engineering, technological innovation, and advanced manufacturing, offering students opportunities for internships, applied research, and specialized training. Both institutions emphasized the importance of fostering local talent to drive Chihuahua’s economic and social development. The agreement aims to prepare students as skilled professionals and leaders, aligning their expertise with industry standards and reinforcing UACH’s and PROESMMA’s positions as leaders in education and national industry.
SOURCE: MEXICO NOW
NEWS BY STATE
GUANAJUATO
Guanajuato is positioning itself to attract investments in key sectors such as electromobility, medical devices, IT, and aerospace, leveraging its strategic geographic location and strong logistics connectivity. At the “First Inter-Institutional Meeting for Economic Corridors of Well-Being,” state officials, including Cristina Villaseñor, Secretary of Economy, highlighted Guanajuato’s access to 80% of the national market, 60% of the population, and 70% of Mexico’s automotive and export industries. The state’s strategy focuses on three pillars: strengthening the industrial ecosystem, promoting visibility and business opportunities for SMEs, and fostering inclusive economic growth. With efficient transportation infrastructure, including highways, railways, and connections to major ports like Veracruz and Manzanillo, Guanajuato aims to boost regional and state development through innovation and job creation.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
CDMX
In December 2024, Clara Brugada, the head of government of Mexico City, announced a new housing program aimed at improving access to housing. The program, titled “Viviendas por el Derecho a Vivir Mejor,” will see the construction of 3,000 new homes in 100 plots, primarily in the Historic Center of the city. The initiative will receive a significant boost, with an investment of 10 billion pesos in 2025, doubling the previous year’s budget. The program targets vulnerable populations, including young people, seniors, and single mothers. Additionally, the new homes will include a Care System, ensuring that families have access to dignified housing in central locations with essential services. Brugada emphasized the importance of providing homes in areas that are well-served, as many families are forced to leave the city in search of affordable housing. The project will be one of the largest investments in the city after the Metro.
SOURCE: INFOBAE
While the city has made improvements in security, with a 49% reduction in homicides and a 66% decrease in organized crime-related deaths since 2019, it faces significant economic and environmental issues. The city’s growth has been slow, averaging just 0.79% annually over the past five years, and two-thirds of households experience labor poverty. The city also suffers from high inequality and environmental problems, particularly air pollution. Experts call for a stronger focus on attracting investment and developing a care system, especially for women. Additionally, Mexico City’s police force faces distribution imbalances and a high rate of unreported crimes like extortion. To address these issues, experts urge a transition to clean energy to improve air quality. Despite these challenges, the city holds potential for growth, particularly in innovation and tourism.
SOURCE: EXPANSIÓN
NEWS BY STATE
STATE OF MEXICO
The State of Mexico has experienced significant economic growth under the current administration, with over 817,000 new business units and 132,922 new jobs created. This increase is largely driven by investments totaling 76.7 billion pesos, primarily in real estate, logistics, and commerce. The state’s economic growth has made it the leading region in the country, accounting for 20.6% of the national total. It ranks as the second-largest economy in Mexico, contributing 9.1% to the national GDP. On the global stage, it ranks 60th, and if part of the European Union, it would be 18th among its members. The State of Mexico also boasts the largest workforce in the country, with over 8 million people employed. This economic success highlights the state’s ability to attract investment across the country, benefiting from its favorable conditions for business development.
SOURCE: LA JORNADA
INVESTMENT NEWS
CENTRAL MEXICO
PARKER
Parker Corporation inaugurated its new plant in Aguascalientes with an investment of $10 million dollars. The facility will create 200 jobs, producing insulation and materials for air conditioning systems.
AUDI
Audi Mexico is set to begin construction of its High-Voltage Battery Assembly Facility. The project includes a specialized team of 350 people trained in high-voltage handling.
SAFRAN
Safran inaugurated a new extension at its plant in Querétaro with an investment of $36 million dollars, creating 128 specialized jobs.
FUCHS
The German company Fuchs, a leader in the manufacturing of lubricants and specialized products for the automotive industry, will build its new facilities in the World Trade Center San Luis Potosí 2 (WTC 2). The new plant will involve an investment of $15 million.
MESNAC
Mesnac, a Chinese company specializing in rubber processing machinery, announced plans to build a new plant in León, Guanajuato, with an initial investment of $20 million dollars.
NORTH
DOOWON REFRIGERATION
The South Korean company Doowon Refrigeration has inaugurated its first plant in Mexico, located in the municipality of Apodaca, Nuevo León. This new facility, the result of an initial investment of $18 million dollars, will create 100 jobs.
GUNTER
With an investment of $15 million dollars and the creation of 300 direct jobs, the German multinational Güntner officially inaugurated its Plant No. 5 in Nuevo León. The new facility is located in Apodaca.
SOURCES CLUSTER INDUSTRIAL , MEXICO INDUSTRY
LEGISLATIVE CHANGES AND INITIATIVES
POLITICAL
• FIRST READING OF THE BILL WITH A DECREE PROJECT TO AMEND AND ADD VARIOUS PROVISIONS TO THE GENERAL LAW FOR EQUALITY BETWEEN WOMEN AND MEN, THE GENERAL LAW ON WOMEN’S ACCESS TO A LIFE FREE OF VIOLENCE, AND THE NATIONAL CODE OF CIVIL AND FAMILY PROCEDURES
Presented by: Joint Committees on Gender Equality and Legislative Studies
Objective: Define gender wage gap and promote equality in remuneration and opportunities regardless of gender or other characteristics. Establish a National Registry for Protection Orders against gender-based violence. Propose fiscal and labor reforms to reduce gender disparities, foster equal representation, and address workplace discrimination.
Status: 2024-12-03 - Published in the Parliamentary Gazette
• BILL PROPOSAL TO AMEND ARTICLES 35, 36, 40, 41, 73, 115, 116, AND 135 OF THE POLITICAL CONSTITUTION OF THE UNITED MEXICAN STATES
Presented by: Deputy Montserrat Ruiz Páez (Mex - PVEM)
Objective: Enhances civic participation by recognizing voting in plebiscites and referendums as citizens’ rights and obligations, focusing on fundamental political decisions. Grants the National Electoral Institute (INE) authority to organize such mechanisms. Mandates state constitutions to provide for direct citizen participation tools, including plebiscites and referendums, and specifies re-election terms for local officials. Requires national constitutional reforms to undergo binding public consultation through plebiscites or referendums.
Status: 2024-12-03 - Published in the Parliamentary Gazette
• BILL PROPOSAL TO AMEND ARTICLE 6 OF THE GENERAL LAW ON WOMEN’S ACCESS TO A LIFE FREE OF VIOLENCE TO INCLUDE ADDITIONAL TYPES OF VIOLENCE AGAINST WOMEN
Presented by: Deputy Fuensanta Guadalupe Guerrero Esquivel (Plur - PRI)
Objective: Defines and incorporates new forms of violence against women, including symbolic, obstetric, workplace, institutional, digital, family, reproductive, vicarious, and cultural violence, aiming to address systemic inequality, discrimination, and abuses affecting women’s dignity, rights, and autonomy across various contexts and institutions.
Status: 2024-12-03 - Published in the Parliamentary Gazette
LEGISLATIVE CHANGES AND INITIATIVES
• DISCUSSION REPORT TO AMEND, ADD, AND REPEAL VARIOUS PROVISIONS OF THE FEDERAL LAW OF RIGHTS
Presented by: Joint Committees on Finance and Public Credit; Legislative Studies
Objective: Updates concepts and fees for public services or the use of national assets, including natural protected areas, telecoms for civil protection, exemptions for Afro-Mexican communities, and measures to support the elderly and disabled. Includes adjustments for beaches, mining, water, and environmental services.
Status: 2024-12-03 – Approved, sent to the Federal Executive
• BILL TO AMEND A PARAGRAPH OF ARTICLE 2, ADD NEW SECTIONS TO ARTICLE 8 BIS, AND ARTICLE 52 BIS, WITH SUBSEQUENT RENUMBERING, OF THE MIGRATION LAW
Presented by: Sen. Alberto Anaya Gutiérrez (LNal - PT)
Objective: Guarantee that migrants have access to decent working conditions, ensuring fair employment, adequate wages, human rights protection, and access to social security benefits. Migrants, regardless of their immigration status, are entitled to non-discriminatory employment, equal treatment, and social security and education benefits. The Ministry of Labor and the Federal Attorney for the Defense of Labor will conduct inspections to ensure compliance with labor laws and impose fines on non-complying employers.
Status: 2024-12-10 – Published in the Parliamentary Gazette
FINANCIAL
• BILL TO AMEND AND ADD PROVISIONS TO THE LAW FOR TRANSPARENCY AND REGULATION OF FINANCIAL SERVICES AND THE LAW OF THE BANK OF MEXICO
Presented by: Sen. Rafael Alejandro Moreno Cárdenas (LNal - PRI)
Objective: Mandates the creation of a single fee catalog by the Bank of Mexico, limits financial commissions, ensures transparent contracts, and requires annual detailed reports for clients comparing fees across institutions.
Status: 2024-12-10 – Published in the Parliamentary Gazette
• BILL TO AMEND ARTICLE 30 OF THE LAW TO REGULATE FINANCIAL TECHNOLOGY INSTITUTIONS AND ARTICLE 2 OF THE MONETARY LAW OF THE UNITED MEXICAN STATES
Presented by: Sen. Alejandro Ismael Murat Hinojosa (LNal - MORENA)
Objective: Authorize virtual assets as legal currency, requiring prior registration and approval by the Bank of Mexico. The Bank is granted one year to assess and approve eligible virtual assets for legal circulation.
Status: 2024-12-10 – Published in the Parliamentary Gazette
LEGISLATIVE CHANGES AND INITIATIVES
SECURITY
• FIRST READING OF THE BILL WITH A DECREE PROJECT TO AMEND AND ADD VARIOUS PROVISIONS TO THE NATIONAL CODE OF CRIMINAL PROCEDURE AND THE GENERAL LAW OF THE NATIONAL PUBLIC SECURITY SYSTEM
Presented by: Joint Committees on Gender Equality and Legislative Studies
Objective: Mandates police to enforce protection orders for gender-based violence. Introduces gender and child protection perspectives in public security functions, police training, and data management. Establishes the National Registry of Protective Measures for Women, Adolescents, Girls, and Boys to ensure traceability, coordination, and continuity in safeguarding measures across all government levels.
Status: 2024-12-03 - Published in the Parliamentary Gazette
LABOR
• BILL PROPOSAL TO AMEND ARTICLE 140 BIS OF THE SOCIAL SECURITY LAW AND ARTICLE 37 BIS OF THE LAW OF THE INSTITUTE OF SECURITY AND SOCIAL SERVICES FOR STATE WORKERS, REGARDING CARE LEAVE FOR CHILDREN WITH CANCER
Presented by: Deputy Eunice Abigail Mendoza Ramírez (Plur - MORENA)
Objective: Establishes care leave for parents, legal guardians, or primary caregivers of children up to 16 years old diagnosed with any type of cancer. The Institute will issue a certificate detailing the child’s diagnosis, severity, prognosis, specific care needs, and treatment duration for employer notification. Extends leave duration upon medical reevaluation if the illness or treatment complexity warrants it. Allows caregivers to alternate or share leave based on a care plan submitted to the Institute.
Status: 2024-12-03 - Published in the Parliamentary Gazette
• DECREE BILL AMENDING SECTION VIII OF ARTICLE 127 OF THE FEDERAL LABOR LAW
Presented by: Geovanna del Carmen Bañuelos De la Torre (MORENA)
Objective: Prohibits imposing maximum limits on profit-sharing for workers. The minimum share must be the average received over the past five years, applying whichever amount is more favorable to the worker.
Status: Pending in the Commission for discussion
LEGISLATIVE CHANGES AND INITIATIVES
• DECREE BILL AMENDING VARIOUS PROVISIONS OF THE FEDERAL LABOR LAW; GENERAL LAW FOR EQUALITY BETWEEN WOMEN AND MEN; AND GENERAL LAW OF TRANSPARENCY AND ACCESS TO PUBLIC INFORMATION
Presented by: Noemi Berenice Luna Ayala (PAN)
Objective: Mandates fair and equitable wages regardless of gender, implementing equal pay measures, salary transparency, and penalties for non-compliance. Requires companies to report gender-disaggregated salary data, ensuring accountability and reducing wage gaps.
Status: Presented to the plenary of the Chamber of Deputies
• VARIOUS PROVISIONS OF THE FEDERAL LABOR LAW AND THE FEDERAL LAW OF WORKERS IN THE SERVICE OF THE STATE, AS OUTLINED IN SECTION B OF ARTICLE 123 OF THE CONSTITUTION, ARE REFORMED AND ADDED.
Presented by: Submitted by the Executive, to be turned to the Senate
Objective: Establish in both sections of Article 123 of the Constitution an explicit provision for labor laws to include measures aimed at eradicating the gender wage gap.
Status: Submitted as part of a Set of Reforms by President Claudia Sheinbaum; Presented to the plenary of the Senate
PRODENSA INSIGHTS
THRIVING IN NEARSHORING: INSIGHTS FROM THE NAVIGATOR-IN-CHIEF
To capitalize on nearshoring opportunities in Mexico, manufacturing companies should focus on:
1. Trade Compliance
Ensure strict adherence to the IMMEX program and Annex 24 inventory tracking to avoid penalties. Implement automated inventory management systems aligned with engineering changes.
2. Supply Chain Resilience
Develop robust supplier networks and establish backup options to mi tigate resource competition and potential disruptions.
3. Leveraging Trade Agreements
Utilize USMCA benefits like reduced tariffs and streamlined logistics, ensuring compliance to enhance competitiveness.
4. Infrastructure Expansion
Assess and upgrade facilities and logistics to meet increased demand, considering options like expanding warehousing and investing in new equipment.
5. Labor Management
Comply with Mexican labor laws, offer competitive compensation, and maintain a strong HR presence to attract and retain skilled workers.
6. Environmental Responsibility
Adopt sustainable practices, adhere to environmental regulations, and engage with local communities to build a responsible business repu tation.
By addressing these areas, companies can effectively navigate nears horing complexities and lead in North America’s evolving manufactu ring landscape.
PRODENSA INSIGHTS
CUSTOMS OF THE FUTURE: HOW AI IS REDEFINING INTERNATIONAL TRADE
Artificial Intelligence (AI) is revolutionizing customs operations by enhancing efficiency, accuracy, and compliance. At the 2024 TradeHub Customs & Trade Innovation Summit, experts, including Prodensa CEO Emilio Cadena, discussed AI’s transformative impact on the sector.
KEY DEVELOPMENTS:
• Predictive Analytics: AI enables customs agencies to anticipate trends and develop data-driven solutions, allowing for quicker responses to disruptions in international trade.
• Automated Tariff Classification: AI applications, such as virtual assistants, automate tariff classification, reducing processing times and minimizing human errors that can lead to penalties and delays.
• Regulatory Compliance: AI automates the review of regulatory documents, ensuring consistency and compliance before submission, thereby saving time and reducing the risk of sanctions.
• Enhanced Roles for Customs Agents: By handling repetitive tasks, AI allows customs agents to focus on strategic decision-making, enhancing their roles rather than replacing them.
• Cybersecurity Considerations: The integration of AI introduces cybersecurity challenges, necessitating robust security systems and contingency plans to protect against cyberattacks.
FUTURE OUTLOOK:
As AI technology advances, its role in customs will expand, potentially leading to autonomous decision-making systems. Successful adoption depends on professionals embracing these technologies to remain competitive in the global market.
In summary, AI is transforming customs operations by automating processes, ensuring compliance, and enhancing the roles of customs agents, all while necessitating robust cybersecurity measures.
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