I wrote a post some weeks ago about how Audi was luring the German carmakers Mercedes and BMW to Mexico. Auto News is reporting that Mercedes and Nissan are joining forces to manufacture a small luxury car at Nissan Plan in Aguascalientes, probably the CLA. Apparently, the joint venture will also manufacture the Infiniti Q30. This Plant represents a $2 B USD investment that will open later this year.
It seems that automotive industry trusts the installed capacity of Mexican manufacturing facilities, as well the quality of Mexican employees necessary for assembling luxury cars. On the treaties side, the conversations of Mexico to enter the TPP (Transpacific Partnership) are moving well, as well as the Pacific Alliance (Mexico, Colombia, Peru and Chile). The later expected to be signed by the end of year.
Mexico has been preparing for this; Government has a very attractive and auto focused regulation with export incentive programs like IMMEX, which allows carmakers and auto-part companies to temporary import raw material and tools without paying taxes, as long as they are exported or sold between IMMEX companies. This combined with the many treaties of Mexico, gives it the potential to build an auto nation.
Who do you think will move next? My bet is on BMW and could happen at Frankfurt Auto Show.