From Guanajuato, Mazda Makes Its Global Move Attention Japanese

8 THE JAPAN TIMES MONDAY, SEPTEMBER 16, 2013 Special Economic Reports 第３種郵便物認可 This report was produced by WORLD EYE REPORTS. If you would like further information on any of the companies and organizations featured here, please email World Eye Reports us at [email protected]. Mexico www.worldeyereports.com kets from Mexican bases.” of Commerce in Mexico. “There place in which to plant a foothold With Mexico’s manufacturing are still areas for improvement, for their global interests. Attention Japanese investors: ‘This is Mexico’s time’ sector and established logistics and I have no doubt the business With its strategic geographi- infrastructure undergoing continu- he year 2013 marks a land- ous renovation, the country is tak- mark for Mexico-Japan ing center stage as a global export Trelations: commemorating node. Hideyuki Takahashi, director Japanese 125 years of diplomacy and trade general of the Japan External Trade between the nations that is a testa- Organization (JETRO) office in companies — ment to the two countries’ long- Mexico City, explains: “Mexico’s standing commitment to each other trade agreements, coupled with particularly from as strategic and vital partners for its strategic location, make it an the automotive economic growth. That commit- ideal foothold for export-oriented ment was renewed when Mexico’s tech companies. To its north is the sector — have been president, Enrique Peña Nieto, and world’s biggest market, while to its Prime Minister Shinzo Abe held a south are the emerging economies actively investing in summit in Tokyo in April this year. of Central and South America.” An Strengthening bilateral business extensive network of roads, rail- Mexico.” was at the top of their agenda. ways and ports — linking the Gulf Both leaders highlighted grow- of Mexico and the Pacific Ocean — SHUICHIRO MEGATA ing bilateral trade and an in- — allows Mexico to easily access Japanese Ambassador vestment relationship that is in- demand and production from Eu- to Mexico IN MEXICO EMBASSY OF JAPAN creasingly vibrant and mutually rope and Asia. beneficial. The resulting creation Peña Nieto’s administration has of quality jobs and technology also ultimately achieved something transfer has contributed to signifi- the country hasn’t experienced cant growth for both economies. in some time: political stability. Specifically, Peña Nieto and Abe Having negotiated a pact with the stressed the roles of the continu- country’s two main opposition ing international expansion of parties — the conservative Na- Japanese companies in relation to tional Action Party (PAN) and the the Mexican automotive industry’s socialist Party of the Democratic growing presence as a global man- Revolution (PRD) — his Institu- ufacturing center. tional Revolutionary Party (PRI) “Japanese companies — partic- is guaranteed political support as ularly from the automotive sector it aggressively introduces reform WER — have been actively investing in PRO MEXICO in the areas of labor, banking and Raul Gonzalez, Deputy Director of Economic Promotion; Hideyuki Mexico, with auto and auto parts The future is bright for Mexico given its strategic geographical location, growing workforce, and strengthening economy education, while liberalizing the Takahashi, Director General of JETRO Mexico manufacturers having announced telecommunications and energy major projects successively,” re- The vigorous development of from abroad seeking high-quality Ricardo Navarro, president of of an Economic Partnership Agree- sectors. His administration has also relationship between Mexico and cal location and an abundance veals Shuichiro Megata, Japan’s the automotive sector has also treatment at a fraction of the cost the Mexico City Chamber of Com- ment (EPA) in 2004, as Japan had made improving security a top pri- Japan will strengthen further in the of resources — both human and ambassador to Mexico. “Nissan positively influenced a number of elsewhere. The country’s logistics merce cites stability in the financial long recognized Mexico’s domes- ority — of particular importance to coming years.” material — as well as high-tech alone has invested $2 billion to other industries, as sourcing for and transport service sectors are sector as a major driver for growth: tic market and export potential. the Japanese business community. Current government reforms manufacturing in the automotive, build a car production plant.” In high-tech manufacturing in elec- benefiting as well. Official data “Mexico has a strong financial sec- “The EPA signed by both countries “The Mexican government has are now geared at making Mexico medical and infrastructure indus- the coming years in Mexico, three tronics, metallurgy and machinery released by the office of Mexico’s tor with $160 billion in reserves, has had a tremendously positive long recognized the importance more beneficial and, at the same tries, Mexico will continue to ex- of Japan’s automakers — Honda, becomes more available. Mexico’s Secretary of the Economy indi- low inflation, and a GDP growth impact for both countries,” says and contribution of the Japanese time, more secure for foreign firms, pand robustly as Japan’s largest Nissan and Mazda — are set to increasingly well-regarded medi- cates that, from 2005 to 2013, in- rate that is unmatched in Latin Megata. “Mexico is one of the business community, and is taking and Japanese investment can now trading partner in Latin America. generate thousands of jobs directly, cal tourism industry is growing, vestments in Mexico by Japanese America.” countries with the largest number an active role in making the coun- realize the full potential of what Ambassador Megata speaks for the not counting those that will be cre- as its most internationally well- companies alone have totaled more The robust flow of Japanese in- of trade agreements around the try more conducive for foreign Mexico has to offer. Today, more entire Japanese business commu- ated for the industry’s entire supply known medical centers become than $11.4 billion: much of it in vestment to Mexico is also largely world, and Japan can take advan- investment,” says Koji Ishimatsu, and more Japanese companies are nity, declaring: “This is Mexico’s chain. prime destinations for patients these growing sectors. credited to both countries’ signing tage of this in tapping those mar- president of the Japanese Chamber recognizing Mexico as the ideal time. Pay attention to Mexico.” Insuring a new crop of drivers From Guanajuato, Mazda makes its global move exico has over 100 mil- ust eight years after Mazda de Orellana adds, “Carrying a Jap- products, they brought in a strong lion people, but less Mexico started commercial anese brand here in Mexico is an after-sales service culture.” M than a third of that num- Joperations in the country, the advantage in itself. In the Mexi- In addition, Mazda had to dif- ber in cars. It is a figure that is company is set to open a full-scale can mind-set, Japanese brands are ferentiate itself from other foreign expected to rise in the next de- production facility in the central guarantees of good quality, high brands in order to grow market cade, due to two main factors: state of Guanajuato with an ini- technology and excellent service. share. With its “Zoom-Zoom” its growing middle class and the tial annual production capacity of There is no doubt that we at Maz- slogan, the company markets its wave of maturing young people 140,000 units. da Mexico are dedicated to up- vehicles in Mexico as sporty, en- now starting to enter the work- “The new factory will symbol- holding these values every day.” joyable cars akin to premium Eu- force. A predicted increase in ize Mazda’s tremendous growth In fact, Japanese auto com- ropean brands. average consumer income should in Mexico’s automotive sec- panies have helped shape many “We make cars for people who lead to an accompanying increase tor within a relatively narrow excellency standards for the enjoy driving,” Orellana says. in consumer expenditure — with time frame,” explains Leopoldo Mexican automotive se ctor. “We have the soul of a sports car owning a car on the top of many Orellana, president and CEO of “Prior to the signing of the North manufacturer, so we don’t make a list. Mazda Mexico. When the plant American Free Trade Agreement cars that just take you from point The excellent prospects for is switched on early next year, the (NAFTA) in 1994, Mexico’s auto A to point B.” a strengthening automotive in- Japanese auto manufacturer will sector was closed, and after-sales Targeting a young demographic dustry has more and more of the officially plant a foothold on its service deficient,” he continues. (company data indicates its aver- world’s largest automotive com- WER way to becoming a major player “Afterward, major U.S. and Japa- age customer is 30 years old), panies maintaining and building Joaquin Brockman Lozano, Director General of Qualitas in both American continents in nese players came in introducing Mazda Mexico currently has a 3 manufacturing facilities in Mex- the coming years. better-quality cars. Along with the percent market share in the coun- ico. In fact, most of the Japanese the best prepared companies in million cars, equivalent to 20 per- try: projected to increase to 4.5 foreign direct investment (FDI) the sector are expected to grow cent of the total market. percent once the new production MAZDA into Mexico is aimed at this sec- the most in the coming years. “We had some difficulties in facility starts. Leopoldo Orellana, President and CEO of Mazda Mexico tor — approximately 80 percent Qualitas is one of those. Start- the beginning, especially with A significant opportunity for of total FDI from Japan. ed in 1994 with only five employ- other well-established players Mazda in Mexico opened up in the largest number of free trade Mexican plant marks the com- The auto insurance sector, ees, today it has over 8,000 agents already in the market,” says Joa- 2005, when Japan and Mexico agreements, allowing us to pen- pany’s first-ever overseas fac- quin Brockman Lozano, director signed an Economic Partnership etrate other markets.

Load more