Friday, 12 December 2014
Mexican bank to work with automotive sector
The Mexican bank Banco Nacional de Comercio Exterior (Bancomext) is to begin offering automotive suppliers credit at preferential rates.
The bank signed an agreement to work with the automotive sector, to strengthen development and competitiveness of suppliers in the region.
The agreement allows incorporation of new local firms into the supply chain, and intends to increase national content in the industry.
The agreement also aims to provide support to automotive suppliers through training, technical assistance and resources for developing new technology.
The Proauto Integral programme intends to align the efforts of federal agencies and entrepreneurs in the automotive sector.
Over the next two years, according to Mexico’s economy minister, the programme could result in 42,000 new jobs.
Along with favourable credit rates, the programme increased investment into the automotive university for new equipment, increasing its budget by about 33 per cent. Participants include the Ministry of Economy, INADEM (the country’s National Institute of Entrepreneurship), ProMexico, and NAFIN (Nacional Financiera, supporters of expanding financing to micro, small and medium businesses).
With automakers investing heavily in expanding Mexico’s production capacity, forecasts suggest capacity could grow to nearly 4.8 million units by 2020. Suppliers too are increasing investment.
These government programmes appear geared toward supporting opportunities for locally owned suppliers, second and third tier level suppliers, who are also needed.
As evidence of the “new-to-Mexico” concerns of the OEMs, Daimler AG has proposed working with BMW AG to build a supplier network, along with announcements from several suppliers increasing investments throughout the year.
While the Mexican workforce is a skilled one, particularly in regions with longstanding automotive production, training remains a major concern.