A couple of months ago, I wrote a post called “How many OEMs do you need to amend the auto decree?“, where I explored the decision of the Administration of Felipe Calderón on raising the minimum volume of production for being elegible of the benefits of the Auto Decree. I further suggested that the Government and the auto industry needed to make a wall of greatness with achievements and be proud of this auto/aerospace nation in the making.
Just now, it seems that it happened. Administration of Enrique Peña announced that the Auto Decree will not be amended, i.e. the minimum requirement of 50,000 units will remain to be elegible for OEMs benefits (mainly tax breaks). Of course, these benefits will be extended to all tiers and suppliers, and will release some preassure on Toyota, who was directly affected by the amendment.
Government and the industry seem willing to build their wall of greatness around the good conditions Mexico is having for investing in auto business. Government is taking care of the industry.
It has reached an agreement with Argentina to restart the exports, and there are some new assignments under the ACE 55 for exporting new light vehicles to Brazil, that Nissan and North Pole Star were awarded with.
Government will publish, in the next days, an extension for importing used cars, that will expire January 31, 2015. This will certainly will hit the new and used car dealerships, but the aftermarket industry may find some good use for that.
The opening of the new WV Plant in Silao, Guanajuato, and the forthcoming Plants of Honda and Mazda, show true interest from investors in having an operation running in Mexico. Many other Plants are yet to be announced.
So, it is time for hunting a land, rent a space at an industrial park, negotiate with local government for tax breaks or cheap land, request IMMEX program, set up logistics and hire personnel.
I will be writing several posts on automotive business. I hope this can be of help for all of you. Time is of the essence, let´s do automotive business like it´s 2013, since there is no better timing than today. Grab momentum.