Mexico investment: security crisis does not stop investments in Guanajuato

05/02/2020

Guanajuato is going to become the second state with the highest national automotive production, just below Coahuila, said Mauricio Usabiaga.

Transnational companies trust Mexico but national companies do not: Mexico investment sentiment
Transnational companies trust Mexico but national companies do not: Mexico investment sentiment

The inauguration of the Japanese assembly plant will take place tomorrow in a state, and specifically a region, that suffers the worst insecurity problem in the country at the moment, since both Apaseo el Grande and the surrounding municipalities: Apaseo el Alto, Celaya and Comonfort register high murder rates every day.

In January alone, 453 intentional homicides were committed throughout the state. And in the region, 147, where Celaya, Villagrán, Apaseo el Grande and Apaseo el Alto were the municipalities with the most cases.

Interviewed about whether this violent environment will not affect the work of the Toyota plant, Economic Development Secretary Mauricio Usabiaga Díaz Barriga responded: "Let's hope they solve it soon; we have experts there in the Public Security Secretariat and in the Attorney General's Office; let's hope they have support from the Federation in the state.

With the official inauguration of the assembly plant, Guanajuato will become the second state with the highest national automotive production, just below Coahuila, said Mauricio Usabiaga.

"We are very pleased. So we have come to round off our automotive segment in Guanajuato very well... And to have such a prestigious brand in the state, so that it comes to complement the other brands we have: Honda, Mazda, General Motors, Hino, which produces a heavy vehicle, the Ford transmission manufacturer and the Volkswagen engine manufacturer," he recalled in an interview with El Sol del Bajio.

It will generate a thousand more jobs

The official added that the plant currently generates 1,000 jobs, which will increase to 2,000 in the short term. And that since construction began to date, 947 million dollars have been invested in it.

"And in the intangible benefits, it is an investment that has been running since 2008. It was initially going to be installed in Celaya. But after the 2009 crisis and the tsunami, they cancelled their project. And Honda was brought in," he recalled.

Although it had not been inaugurated, on Dec. 16, 2019, Toyota began operations at its manufacturing plant in Apaseo el Grande, for the production of its emblematic Tacoma pickup truck, the company reported in its Jan. 6 press release.

Three years of construction

The first stone of the assembly plant was laid on November 14, 2016, when Miguel Márquez Márquez was governor of Guanajuato. The then Secretary of Economy, Ildefonso Guajardo, was a special guest.

"Toyota arrives in Guanajuato with an investment of 947 million dollars to generate two thousand direct jobs and up to 10 thousand indirect jobs; we expect the arrival of approximately 50 new companies and more than 100 companies in the area that will expand their plants to be suppliers of the assembly plant. This means a historic boost to the development of 15 municipalities in the region," the governor said that day.

He highlighted the environmental management of this Japanese company, by significantly reducing CO2 emissions and water use by 50 percent.

WHY DOES MEXICO STAND OUT FOR ATTRACTING INVESTMENT?

Incentives, support and a solid economic environment make Mexico an attractive country for investments. Mexico is the 14th economy in the world. It is also ranked as the 13th country with the largest amount of international reserves.

Mexico is the most open economy in the world thanks to the 12 free trade agreements it has with 46 nations. Thanks to the Trans-Pacific Economic Cooperation Agreement, the country gets access to 12 nations that represent 38% of the world's Gross Domestic Product (GDP).

Mexico is a great export platform thanks to its strategic geographical location. According to the Benchmark Report study, published by the Confederation of Danish Industry, Mexico is the most competitive country in terms of cost and taxes. It has tax programs of immediate deduction and tax incentives that positively impact the tourism industry.

Legislative reforms have been carried out that are in the process of evolution and improvement, such as anti-corruption and financial.

By Mexicanist