Mhlnews 4314 Dachser Automotive

Mexico's Automotive Boom Benefits US Logistics Industry

Feb. 19, 2016
Mexico is the biggest supplier of automotive parts to the United States, accounting for one-third of all imports.

The United States experienced an increase of 5.4% of manufactured vehicles, which places it right behind China, according to the International Organization of Motor Vehicle Manufacturers (OICA). The development of the automotive industry also has had a positive impact on the logistics sector.

"In the U.S., we are seeing a significant growth in our operations because of Mexico's automotive boom, which positively affects us." says Frank Guenzerodt, president & CEO of logistics services provider Dachser USA. "Nearshoring in Mexico has become more attractive for U.S.-based companies in the past years instead of outsourcing operations to China."

Mexico was the biggest supplier of car parts to the U.S., accounting for 34% of the imports in 2014.

In 2014, Mexican factories produced 3.2 million cars, a year-over-year increase of 9.8%, according to AMIA, the Mexican Automotive Industry Association. Mexico surpassed Brazil and is now the seventh-largest auto-producing country at a global level. A total production of 3.5 million vehicles was projected for 2015.

Analysts are also predicting that production in Mexico will reach 5 million cars by 2020, moving the country to fifth rank globally. "We have recognized a vast increase of shipments for the automotive industry," says Christian Speit, managing director of Dachser Mexico. "In 2014 we moved 36% more TEUs [20-foot equivalent units] compared to the year before."

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