Foreign Direct Investment in Latin America and the Caribbean 2017

18 Executive summary
Economic Commission for Latin America and the Caribbean (ECLAC)
Figure 4
North America: vehicle production by country, 1990-2016
(Units and percentages)
Adoption of
NAFTA a in 1994
Since 2008, Mexico’s
production has consistently
exceeded Canada’s
The international financial crisis
hit the United States automotive
industry hard
12.2
million
9.8
million
3.6
million
1.9
million
821 000
2.4
million
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Mexico
Canada
United States
6.5
15.5
77.9
19.8
13.0
67.1
With market opening in
1985, the adoption of
NATFA a in 1994 and sector
development policies,
Mexico’s automotive
industry tripled its share
in North American
production between
1990 and 2016.
Meanwhile, the share
of the United States
automotive industry
dropped from 78% to 67%.
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Mexico
Canada
United States
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of information from International Organization of Motor Vehicle Manufacturers (OICA).
a
North American Free Trade Agreement.
The outlooks for Mexico’s motor vehicle industry will depend on at least two
independent sets of factors. On the one hand is the transformation driven by the
technology revolution under way in the global automotive industry, changes in the
concept of mobility and consumptions patterns, and regulatory pressure in the fields
of safety, the environment and energy efficiency. On the other hand is the uncertainty
triggered by the announcements of the new Administration in the United States.
Despite its recent sound performance, the Mexican industry is not immune to global
developments in the sector. First of all, although Mexico has been able to attract many
of the global carmakers and a large number of first- and second-tier suppliers, it still lags
behind in terms of third- and fourth-tier companies. This points to the weakness of the