The North American Automotive Industry established in Mexico in 2017

Publication Type:

Conference Paper


Gerpisa colloquium, Paris (2018)


2017 NAFTA Negotiation, Automotive Industry Stablished in Mexico


In this paper, information from the articled written in 2013 is updated with the objective of revising the consequences faced by the automotive industry established in Mexico, 20 years after NAFTA. Data is shown, supporting conclusions that persist over five years; conclusions such as 1) NAFTA was the culmination of a long negotiation process made to obtain huge facilities and advantages in the establishment of foreign automotive factories in Mexico. 2) It has arisen and still arises from international capital expansion. 3) Out of the main advantages that foreign automotive companies established in Mexico have achieved, cheap labor stands out, being just as productive as the one in investor countries; besides, this fact has an influence over the countries of origin, where labor negotiations take place, in which companies manage to bring down salaries and benefits, after comparing them to those in Mexico. 4) Advantages in Mexico come down to having employees from the terminal automotive industry (only), with very high income, if compared to the income received in other industrial, commercial, or service branches, and 5) technology transfer has been insignificant.
Information provided is enough to allow understanding of the small and relative importance that factories established in Mexico have, in relation to total production and consumption in the world. Lastly, several articles are provided and commented on, pointing out the character traits of North American and Mexican presidents in order to discuss how they affect the NAFTA renegotiation.

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