DaimlerChrysler has two plants in Mexico. The first turns out trucks and trailers in Santiago Tianguistenco, in the state of México; the second produces buses in García, Nuevo León. The firm is spending

26 million dollars to modernize the plants, and expand their capacity. DaimlerChrysler’s Mercedes-Benz bus-making division supplied 6,090 new vehicles in 2005, 54% of the total national demand.

There is considerable room for expansion in bus sales since about one-third of the national fleet of 400,000 buses is now more than 20 years old. Toyota entered Mexico for the fi rst time in 2002. It has announced plans to expand production of cars from 35,000 last year to 50,000 by 2007, and of Tacoma pick-up cabs from 180,000 to 200,000 a year.

The plan requires the purchase of domestic-manufactured auto parts worth 1.4 billion dollars this year, 7.7% more than during 2005. Toyota’s decision to open a factory in Tijuana led many other Japanese firms including Maruyasu, Sango, Nifco, Yorozu and Kasai, to open auto parts plants nearby. Toyota’s expansion is a boom for other suppliers as well, such as Alpha, Asahi Glass, Bridgestone, Sumimoto Wiring System and Yazaki Corporation.


Source:
LLOYD Mexican Economic Report - March 2006 Edition
http://www.lloyd.com.mx/en