The Long History of the Mexican Automobile Industry

With over one million employees, Mexico’s car manufacturing industry has risen to become the country’s largest manufacturing sector. Today, almost all of the major automakers have a plant in Mexico. Mexico is now the world’s seventh-largest manufacturer of passenger and cargo cars, the fifth-largest supplier of auto parts, and the top exporter of tractor trucks. 90% of this car output is ultimately exported, with 76% going to the United States. This rapid expansion did not occur overnight. Mexico’s century of automaking history has taught numerous lessons about the importance of fortifying foreign collaborations. We explain how Mexico evolved into the car manufacturing powerhouse that it is today. Automotive suppliers will learn how to position themselves to assist Mexico’s powerful network of OEMs, and Tier 1 and Tier 2 suppliers with this knowledge.