GM Mantiene una Solida Compra Anual de Autopartes en Mxico.
BackTotal 2009: 6,282 MdD
Estado 2009 APV USD MDDCoahuila $ 1,515 Guanajuato $ 1,132
Chihuahua $ 817Tamaulipas $ 729 Queretaro $ 428 Nuevo Leon $ 410
SLP $ 291 Estado de Mxico $ 215 Sonora $ 133 Puebla $ 131 Sinaloa $
91 Baja California $ 87 Aguascalientes $ 87 Zacatecas $ 66 Jalisco
$ 52 DF $ 44 Durango $ 24 Morelos $ 19 Veracruz $ 7 Hidalgo $ 4
Total APV: $ 6,282
*Buenos Dias. I am very honored to be a speaker at this very
important conference. In my short time here in Mexico, one lesson
that I have learned is that the health of the domestic automotive
market is critical for GM, the auto industry and the entire economy
here in Mexico. I truly believe that what is good for the Mexican
Automotive Industry is good for Mexico. I have been asked to speak
about the challenges and opportunities in the Mexican Automotive
Industry as it relates to Government programs and involvement. To
do that, Id like to start with some background that I believe we
are all familiar with, but that sets the stage for our future. Ill
briefly discuss some country facts, an overview of the auto
industry here in Mexico, and then well dive into some of the issues
that we, as an industry, are facing today, and in the near future.
Id then like to highlight some success stories from other countries
as an opportunity to learn what we can apply here in Mexico. And,
Ill conclude with some of our challenges and opportunities.*So,
lets start with some facts about Mexico, again to set the stage for
our industry.A population of over 100 million, with the service
sector making up the largest economy at 69%, with the Industry
sector second at 27%.A large part of Mexicos population falls below
the poverty line and this obviously has significant implications
for the country. In terms of the Automotive segment, we sold just
over a million new vehicles in 2008, and will probably hit about
750,000 this year. A large part of our vehicle sales are focused in
the 3 large metro areas of DF, Guadalajara, and Monterreyand this
affects the sales dynamics here in Mexico. *
There have been significant changes to Mexicos Economy in the
past 15 years.
Since 1994, Mexico quickly became an international player in the
Global market with an improved trade exchange policy, primarily due
to NAFTA and other commercial agreements.
As a result of this increased trade, there was less reliance on
oil as the primary economic driver in Mexico, and more balance on
other industries. This included manufacturing, tourism, and other
services that increased their robustness as part of a more
integrated and diversified economy in the international arena.
Also in that timeframe public finances have become more
transparent and stable.
Today, we know that Mexico is facing several national issues
from both internal and external sources and this is obviously a
significant challenge for the government here, as well as for the
economy in general.
To sum it up, Mexico has had significant advances in many areas,
and continues with significant challenges as well.
*I have been asked to speak about the challenges and
opportunities in the Mexican Automotive Industry as it relates to
Government programs and involvement. To do that, Id like to start
with some background that I believe we are all familiar with, but
that sets the stage for our future. Ill briefly discuss some
country facts, an overview of the auto industry here in Mexico, and
then well dive into some of the issues that we, as an industry, are
facing today, and in the near future. Id then like to highlight
some success stories from other countries as an opportunity to
learn what we can apply here in Mexico. And, Ill conclude with some
of our challenges and opportunities.*So, lets move to the auto
industry here in Mexico. As we all know, this is one of the most
competitive markets in the world, with a large number of brands and
products for a constrained market. This creates an interesting
dynamic in the market here.
I mentioned at the beginning that the Automotive sector is
significant for Mexicos economy, and the following facts support
this.
We make up over 17% of the this countries Gross Domestic
Product. When you think of that kind of impact for just one sector,
you quickly realize that this industry deserves significant
government attention.
The auto industry makes up 21.5% of the total export value for
Mexico. This corresponds to $43 B US dollars annually. And, we
export to over 100 countries making up more than $17 B in foreign
exchange.
When it comes to domestic employment, again we have a
significant influence and are a large employment generator. In our
automotive value chain, we employ over 1 million employes in
Mexico, and these are jobs that are part of the formal economy
here, and provide competitive pay and benefits to this large
group.
Lastly, the automotive industry has made significant investments
in Mexico for Research and Development, with 3.1B pesos invested
last year. This is more R&D investment than any other industry
in the country.
*I have been asked to speak about the challenges and
opportunities in the Mexican Automotive Industry as it relates to
Government programs and involvement. To do that, Id like to start
with some background that I believe we are all familiar with, but
that sets the stage for our future. Ill briefly discuss some
country facts, an overview of the auto industry here in Mexico, and
then well dive into some of the issues that we, as an industry, are
facing today, and in the near future. Id then like to highlight
some success stories from other countries as an opportunity to
learn what we can apply here in Mexico. And, Ill conclude with some
of our challenges and opportunities.*Now, as we all know, the
worldwide crisis, has had a significant impact in Mexico. The
combination of external factors, such as the global financial
crisis, and internal factors, like the Influenza, has created a
contraction of the automotive market in Mexico by more than 30% for
this year. We have seen a drop in the Customer Confidence index in
all segments. The financial market has driven restrictions in
credit which have significantly impacted our industry as well. And
this has created challenges for attracting investments in Mexico. A
complicating additional factor for Mexicos auto industry is the
chocolates market, which brought in more than 4.4M imported used
vehicles in the past 4 years. This last factor is a great example
of where government intervention and programs can significantly aid
the industryand Ill use the following chart to show that.
*This chart shows the quantity of used vehicles vs. new vehicles
from 2005 to today.
*As you can see, the Aug. 2005 decree which allowed the import
of used vehicles caused a dramatic spike in the quantity of used
vehicles sold in Mexico.
*We then saw various peaks based on provisions of the decree
that either limited or allowed various types of imported used
vehicles.
*In Feb. 08, we saw another peak in used vehicles when the
decree for allowing imported vehicles 10 years and older was
passed.
*And lastly, we see that the quantity of imported used vehicles
has stabilized with the Jan. 2009 decree, and this has really
helped the industry.
This chart clearly shows the impact of government decrees on our
industry, and also illustrates the potential of the New vehicle
market, if the amount of imported used vehicles can be managed
appropriately.
*I have been asked to speak about the challenges and
opportunities in the Mexican Automotive Industry as it relates to
Government programs and involvement. To do that, Id like to start
with some background that I believe we are all familiar with, but
that sets the stage for our future. Ill briefly discuss some
country facts, an overview of the auto industry here in Mexico, and
then well dive into some of the issues that we, as an industry, are
facing today, and in the near future. Id then like to highlight
some success stories from other countries as an opportunity to
learn what we can apply here in Mexico. And, Ill conclude with some
of our challenges and opportunities.*Id now like to move to
covering some success storiescountries that have improved their
domestic automotive market, in spite of the economic crisis. None
of these examples are perfect, but I believe there are some lessons
that we can apply to our market here in Mexico.
Ill start with the U.S. and Germany, which both have successful
scrappage programs.Ill then cover China and Brazil, that have
attacked this issue with tax cut incentives. And finally well
review Korea, which has a combination of both types of
programs.*The United States government implemented the cash for
Clunkers program in late July of this year as a way of stimulating
the automotive market, and addressing older vehicles that were not
fuel efficient.
The program was resourced significantly with $3B US dollars, and
offered up to $4500 for trading in an old gas guzzler for a new
fuel effiicient vehicle.
The program was a strong success with over 690,000 old vehicles
traded in and $2.8B in rebates submitted.
In terms of the market, August sales increased for the first
time in 2009 from the previous year, a total of 2.7%
One additional learning from this program though is that there
was a contraction in demand the following month, and the term Cash
for Clunkers hangover is being used to describe the lower sales
that the US saw in September. *Germany was probably one of the
first countries to initiate a scrappage program, and theirs started
in January of this year. The German government budgeted over $7B US
dollars for this incentive. Similar to the US version, this program
offerred $3500 for the older cars as trade in. This program, again
very successful, has resulted in more than 3.5 M sales forecast for
2009, which is an 18.5% increase to the forecast prior to this
program. I believe one of the benefits of this program is that it
has had a longer term, stabilizing effect to the auto market in
Germany.*Now, lets talk about China, and youll see that they
decided to take a different route. Their focus was on developing a
very aggressive program with tax incentives. This program started
in January of this year as well. The Sales tax was cut on cars with
smaller engines (less than 1.6 L) by 50%. This has had really
extraordinary results. China has increased their sales, year over
year by 29%, and in the first half of the year, for the first time
in history, had more sales than in the US. This tax program is
credited as the biggest stimulant for the automotive market in
China.
*Very similar to China, Brazil also developed an aggressive tax
incentive program starting at the beginning of this year. Their tax
reductions were focused on financial credit contracts and to
provide funds to guarantee available bank credit for buying new
vehicles.
As a result of this program, Brazil has increased its sales and
has maintained a strong economy. In the first half of this year,
Brazil showed a 4% increase in automotive sales, as compared with
the same period of 2008, even in this crisis timeframe.*My last
example is Korea, which really had a combination of both scrappage
and tax incentives. The strong combination of these 2 programs
resulted in a 21% sales increase from May through August, after
they began these programs.
In summary, these examples provide lessons on how governments
can implement policies to recover vehicle sales, and stimulate
their local markets. We need to understand which are the
appropriate policies and programs to apply here in Mexico.*I have
been asked to speak about the challenges and opportunities in the
Mexican Automotive Industry as it relates to Government programs
and involvement. To do that, Id like to start with some background
that I believe we are all familiar with, but that sets the stage
for our future. Ill briefly discuss some country facts, an overview
of the auto industry here in Mexico, and then well dive into some
of the issues that we, as an industry, are facing today, and in the
near future. Id then like to highlight some success stories from
other countries as an opportunity to learn what we can apply here
in Mexico. And, Ill conclude with some of our challenges and
opportunities.*Continuing the discussion about our market potential
and what weve seen historically, Id like to uses this chart.
*As weve seen in history, right after the NAFTA implementation
really helped our vehicle market, Mexico saw a significant
recession in 1994 which contracted the entire economy.
*** We then saw a number of trade agreements which continued to
increase the industry sales,
*up until the global financial crisis which began late last
year.
Then looking forward, the most optimistic trend for our market,
shows that unless we act promptly to strengthen the domestic
automotive industry, we will only achieve in 2015 the same sales
levels as we had in 2003in other words, without stimulus, we will
see very slow growth in our market.*I have been asked to speak
about the challenges and opportunities in the Mexican Automotive
Industry as it relates to Government programs and involvement. To
do that, Id like to start with some background that I believe we
are all familiar with, but that sets the stage for our future. Ill
briefly discuss some country facts, an overview of the auto
industry here in Mexico, and then well dive into some of the issues
that we, as an industry, are facing today, and in the near future.
Id then like to highlight some success stories from other countries
as an opportunity to learn what we can apply here in Mexico. And,
Ill conclude with some of our challenges and opportunities.*So,
what are our opportunities for the domestic market in Mexico?
First, we must apply the lessons learned from other countries to
Mexico. Part of this means pursuing tax incentives for automotive
sales, including increasing the deductability for new vehicle
purchases.
As we know, we have also started a pilot program for scrappage
here, and we need to use this pilot as a learning tool on what
works for Mexico for the next phase of this program.
And lastly, weve seen in the past that a strong domestic market
attracts more investment in the country, and consequently, should
be a key objective for both the domestic automotive industry as
well as the government.
*To summarize some of our challenges, we need a permanent, long
term government program to strengthen our domestic market in both
the short and long term. Weve seen some great examples from other
countries on how this can be done.
A second factor is that Mexico needs public policies to promote
new energy sources, both for the domestic market, but also for the
commercialization of these new technologies as we enter into this
growth curve on alternative energy.*I have been asked to speak
about the challenges and opportunities in the Mexican Automotive
Industry as it relates to Government programs and involvement. To
do that, Id like to start with some background that I believe we
are all familiar with, but that sets the stage for our future. Ill
briefly discuss some country facts, an overview of the auto
industry here in Mexico, and then well dive into some of the issues
that we, as an industry, are facing today, and in the near future.
Id then like to highlight some success stories from other countries
as an opportunity to learn what we can apply here in Mexico. And,
Ill conclude with some of our challenges and opportunities.*As an
example, we at GM believe that we need to offer an entire range of
fuel efficient systems to meet the wide range of customers needs
globally, now and in the future. All the way from making our
traditional Internal Combustion engines more fuel efficient, to
having the largest test fleet of fuel cell vehicles in consumers
hands in the world. In GM de Mexico, we have been bringing that
technology to Mexico. We produce several types of 6 speed
transmissions in our plants here in Mexico, which can improve fuel
economy by 10%, and we also produce state of the art 4, 6 and 8
cylinder engines with the lastest fuel economy technology. Also, GM
is proud to be the only producer of hybrid vehicles in Mexico, with
hybrid products at our Ramos Arizpe and Silao complexes.
These types of new technologies create jobs. And let me show you
a couple examples of that.** One great example of technology
leadership that has created jobs is the Chevrolet Volt, GMs
extended-range electric vehicle that can travel up to 64 kilometers
on battery power alone, which will be launched in late 2010. That
project has brought significant new technology to Southeast
Michigan, including our recently opened Battery lab. GM expanded
its significant battery research and development capabilities by
opening the largest and most technologically advanced battery lab
in the United States on its Technical Center in Warren, Michigan.
And, the US government has provided millions of dollars in grants
to help invest in development of this technology, thereby also
creating jobs in the area.I have been asked to speak about the
challenges and opportunities in the Mexican Automotive Industry as
it relates to Government programs and involvement. To do that, Id
like to start with some background that I believe we are all
familiar with, but that sets the stage for our future. Ill briefly
discuss some country facts, an overview of the auto industry here
in Mexico, and then well dive into some of the issues that we, as
an industry, are facing today, and in the near future. Id then like
to highlight some success stories from other countries as an
opportunity to learn what we can apply here in Mexico. And, Ill
conclude with some of our challenges and opportunities.*In
conclusion, a healthy auto industry in Mexico is key to our
economic recovery hereI believe weve shown that whats good for the
Mexican automotive industry, is indeed good for Mexico.
We have seen that through several programs over the past 15
years, the participation of the federal and local governments have
been key drivers of the success of the automotive industry
here.
It is critical that we learn from other countries and apply an
appropriate tax program to stimulate the domestic market, thereby
also the general economy.
And lastly, alternative energy technology is one of the largest
growth areas in our business. If Mexico is going to benefit from
the growth in this area, then we must enter this field soon, before
this growth curve is over.
To sum it up, we have several opportunities to grow our market
and economy here in Mexico. The automotive industry and the
government must work together to make this a reality.
*Muchas gracias por su atencion!**
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