German companies will invest 3.800 billion dollars in Mexico

This year marks the Dual Year Mexico-Germany, and as part of it, various activities will take place, besides that, there has been a growing confidence of German companies to do business in Mexico.

By Valeria Bigurra Tuesday, July 12, 2016 comments

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Companies are looking to export to key markets like the US

 

This year marks the Dual Year Mexico-Germany, and as part of it, various activities will take place, besides that, there has been a growing confidence of German companies to do business in Mexico.

 

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For the period 2016-2020, seven companies from Germany pledged investments of approximately 3 thousand 800 million dollars, an amount that represents 62% of total foreign direct investment from the European country in the last year.

 

According to the Mexican-German Chamber of Commerce and Industry (Camexa), revenues generated by German firms for their business in Mexico, currently account for 8% of Mexico’s GDP, while in 2010 accounted for only 6%, which undoubtedly reflects increased confidence in Germany to do business in Mexico.

 

ThyssenKrupp, Grünenthal, BMW, Bosch, Daimler, Kromberg & Schubert and Volkswagen Group are the seven German companies that are developing plants or buying businesses in Mexico with the vision to export to key markets like the US and the rest of the nations of Latin America.

 

BMW will invest one billion dollars between 2016 and 2019 to build a car assembly plant in San Luis Potosi, in order to serve the US, Europe and Latin America markets.

 

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In addition, Bosch will invest 100 million dollars over the next two years to expand production of ABS brakes; Grünenthal pharmaceutical bought Almirall for 34 million dollars and with this, it seeks to grow in the production of drugs for common ailments.

 

Daimler, in partnership with Nissan, will invest one thousand 300 million dollars between 2016 and 2018 for the construction of luxury models of Mercedes Benz and Infinity brands in Aguascalientes; on the other hand, ThyssenKrupp, the company dedicated to the manufacture of automotive parts, will invest 284 million dollars in order to increase its manufacturing of axles and other parts for vehicle assembly in Mexico and the United States.

 

Finally Kromberg & Schubert will make an investment of 65 million dollars over two years for an automotive parts plant in Guanajuato, and Volkswagen Group will invest one billion dollars this year for the production of its new Tiguan SUV in the Puebla plant.