Mexico is the Heart of Automobile Manufacturing in North America

Khodrocar – Mexico is placed between north and south America and it has a significant role in exports and trade between the two continents. Mexico has exactly the same role as Iran’s neighbor, Turkey. Its geographical location is one of the key factors which it has become the heart of automobile production in North America.

As the largest Spanish-speaking country, Mexico has a population of 120 million people and Mexico City is its capital. With 2 million square kilometers, Mexico is the world's 14th largest and the 11th most populous country in the world.

One of the main exports of Mexico is the automobile exports and the reason is that many automotive companies have assembly plant in this country and made it one of the largest car assembly countries. The first destination of these assembled cars are United States, Mexico’s largest business partner; And then the Latin America, Europe and Asia. Mexico currently has about one fifth of North American car production.

After the election of Donald Trump as the president of United States, this country is about to build a wall between Mexico and the United States to prevent immigrants from entering U.S. This wall has lots of disadvantages for most major automotive companies.

Most of major automotive companies have assembly plants in the center and the north of Mexico. Renault-Nissan is one of the largest automakers in the world which has assembly plants in New Mexico and Morelos.

Volkswagen is another car company which has its largest overseas factory in Puebla, Mexico. Models like Beetle, Golf, Golf Wagon, Jetta and Tiguan is produced in this factory. Audi is another German automaker which has a factory in Puebla. GM, Fiat, Toyota, Ford, Honda, Mazda and Hyundai are another automakers which have assembly plants in Mexico.

These factories have lots of financial benefits for these car companies because they are located near North America, one of the major car markets in the world. Lots of Human work force and primary resources, are another factors that made Mexico an ideal country for their assembly factories.

But after the election of Donald Trump as United States president, his new policies about Mexico is going to ruin this situation for these major automakers, specially Germans. It seems that they should give up on their Mexico plants and find another way for making profits.