The US carmaker Ford canceled a US $ 1.6 billion investment project in the central state of San Luis Potosi in Mexico. Raising concerns among other foreign investors, which has a negative impact on the Mexican economy.
The director of American plastic and rubber compounding company Preferred Compounding in Mexico said that Ford’s decision will greatly affect the social and economic situation of San Luis Potosi state. And he estimates economic losses could reach hundreds of millions of dollars or even billions of dollars in the next 5 years.
Earlier, in order to take advantage of the opportunity, about 50 suppliers of auto parts, mostly foreign investors, planned to build a factory around the 280-hectare area that Ford declared was installed. Meanwhile, about 14 auto parts manufacturers have invested in the premise of buying land and signing related contracts with local partners.
In addition, a series of public and private projects, with tens of millions of dollars invested in infrastructure development such as expanding local airports and improving public transport systems, are also being implemented.
Director Eaves warned that this could be just the beginning of many challenges that Mexico faces the new economic policy of newly-elected US President Donald Trump, who during the election made many proposals. threatening economy 2nd largest Latin America.
Donald Trump announced a tax of up to 35% on car manufacturers like Ford, General Motors, Toyota and Honda made in Mexico, then exported to the United States. Experts say that the auto industry, one of the important areas of the Mexican economy will face many difficulties in 2017.
According to statistics, from January to November 2016, Mexico’s car production reached 3.22 million vehicles, of which exports 2.55 million units. More than 77% of Mexico’s total car exports in the first 11 months of 2016 were to the US, the country’s No. 1 auto and auto export market. The automobile industry is now considered an important spearhead economic sector of Mexico and contributes to 3% of gross domestic product