Automotive companies are always on the lookout for a good location to build their plants and factories in order to build their cars. Factors which contribute to what is considered a “good” location usually include the cost of wages and logistics. Most people probably expect to be China to be at the top of the list since it seems like just about anything is made in China.

They would be wrong; it’s Mexico. Actually a lot of American companies, such as Ford, have some of their cars built there. A few years ago the economy was in a good shape and many people were buying new cars. Soon car companies based in Europe like Porsche, Peugeot and Mercedes-Benz and Asia like Honda built plants in Mexico in order to build lots of cars to sell here in America.

However, the recession has affected everyone and companies are now looking for a way to cut costs and save some big bucks. Where could they build cars for the least amount of money? China was a good choice back then. Pretty much all of the big companies had at least one plant in Mexico.

Times sure have changed. It’s no longer as affordable to build cars in China as it once was. All of these issues have made auto makers who are involved in China to again look for a cheaper location with less baggage where they can build their cars. That location is Mexico.

In terms of just location, Mexico is a great place to build cars because it is so close to America. That makes it a lot easier to bring the cars over once they are built. In addition, production of vehicles in Mexico jumped to 2.3 million units in 2010 which the highest it has ever been. Mexico is actually number nine when it comes to countries that are building the most cars. Many companies feel that Mexico is considered an easier place for automotive vehicles to build cars than India or China.

Mexico is also a convenient location because many car parts are being sold in America are built there so now they can easily supply those parts to the companies who are located there. A few major companies looking to build a plant in Mexico include Nissan, Honda and Hyundai.

Honda is actually having a plant built in Mexico that is scheduled to be active in 2014. Production for this factory is expected to be around 200,000. This plant is expected to seriously increase Honda’s production to 1.83 million in the U.S by 2014. Statistics show that more than 87 percent of Honda and Acura cars and light trucks sold in the U.S. market were constructed in North America in 2010. Acura is the luxury car division of Honda.

With the current recession, companies simply have to where there is the least red tape and wages are low. It looks like Mexico is currently that place. Mexico is becoming a hub for the world’s biggest automotive companies when it comes to auto manufacturing.

Author Bio: Written by Jacqueline Isadore – Ford Orange County dealer McCoy Mills Ford has a great selection of Used Cars Orange County to select from. View our Ford Escape Orange County brand new inventory for great prices. We serve Brea, La Habra and Anaheim in Orange County.

Category: Automotive
Keywords: cars built in mexico, cars made in mexico, mexican car plants, car plants in mexico