In order to lower costs, the automotive industry in the US is currently in the state of Nuevo Leon, exploring the possibility of using Mexican supply chain
, according to Raul Rangel Miguel, business partner with Butzel Long. In Mexico, supply chain companies for auto makers have still much potential to develop as exporters, as they are unaware of the legal resources to reach international markets, he weighed in. “Due to the exchange rate instability, it would be complicated for Mexican suppliers to establish locations within the US, since it would imply major dollar investments, but what they can do, is to increase their exports”, he added. “Labor force costs for the automotive industry in Mexico are lower than those in the US and this country is set up to become the fifth automotive producer in the world, when the production increases from the current 3,349,000 vehicles, to 4,959,000 vehicles in 2019”.
Source: El Norte