THE TOP DESTINATION OF THE AUTOMOTIVE INDUSTRY IN CENTRAL MEXICO. September 17 1
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1 THE TOP DESTINATION OF THE AUTOMOTIVE INDUSTRY IN CENTRAL MEXICO September 17 1
2 ECONOMIC OVERVIEW BASIC INDICATORS 5.7 million inhabitants GDP = $47.3 billion Usd $20 Billion USD in exports 6 th most populated 7 th economy in Mexico Increase 226% in 10 years Labor Force: 2.4 million 24 years old average New job seekers yearly 60,000 Business Oriented Unions in Guanajuato 2
3 STRATEGIC LOCATION & LOGISTIC INFRASTRUCTURE LOCATED IN THE HEARTHLAND OF MEXICO Within a 400 km radius: 80% of Mexican market 70% of Industry 70% of the Automotive Industry 70% of the Foreign trade 60% of the Mexican population Guanajuato is strategically located in the middle of the three largest markets in Mexico 3
4 STRATEGIC LOCATION & LOGISTIC INFRASTRUCTURE ROAD CONNECTIVITY The most important highways in Mexico (45 & 57) cross GTO Less than one day trucking to US Border Less than one day trucking to ports in the Pacific or the Gulf of Mexico 4
5 STRATEGIC LOCATION & LOGISTIC INFRASTRUCTURE MAIN SEAPORTS / RAIL ROADS Excellent strategic and geographic location, and connectivity with major seaports Pacific Ocean and the Atlantic Federal and State Government work in the intermodal terminal project in the Celaya Intersection of both rail companies: Kansas CIty and Ferromex / start autumn 2014 Ferromex launched the new cargo route Guanajuato-Chicago in 5 days without customs stops. With an investment of 260 million pesos and capacity from 50,000 to 80,000 containers per year. Will connect the rail service to the Port of Manzanillo, Guadalajara, Ciudad Obregon, Hermosillo, and Mexicali, from G.I.P. this service will be offered 510 km 512 km 584 km 747 km 5
6 STRATEGIC LOCATION & LOGISTIC INFRASTRUCTURE ROAD CONNECTIVITY IN THE STATE Highway 45 To Laredo Highway 45D Toll Road To Juarez City Palmillas Apaseo (Under Construction) Salamanca Leon (Under Construction) León Guanajuato Silao San Miguel de Allende Irapuato Abasolo Salamanca Celaya Valle de Santiago To Manzanillo To Lazaro Cardenas San José Iturbide To Mexico City To Mexico City The connectivity within the state of Guanajuato, enables the workforce to commute easily from one city to another one This has allowed the development of a strong supply chain outside the industrial corridor 6
7 INTERNATIONAL CONNECTIVITY GUANAJUATO INTERNATIONAL AIRPORT (BJX) BJX is the busiest airport in the Bajio Region Non-stop daily flights to: Houston (5), Dallas (2), L.A. (2), Oakland (1), Chicago (1), Atlanta (1), San Francisco (1) Several domestic flights to Mexico city, Monterrey, Tijuana, Guadalajara. Capacity to serve 26 flights per hour. In 2014 he attended and received 1.2 million passengers (40% international & 60% national). Source GAP 7
8 A UNIQUE SYSTEM OF INDUSTRIAL CITIES Total population: 5.7 million The 20 minutes system 14 medium size cities with over 100,000 inhabitans Population spread out Several labor pools Diversified economy 8
9 AN INDUSTRY DRIVEN EDUCATIONAL SYSTEM 88,000 high school students Engineering enrollment greater than 36,000 students. Annual Offer over 5,000 engineers. Some specialized careers offered in Guanajuato: Automotive System Engineer Electro mechanic Engineer Manufacturing Process Engineer Mechanical Engineer Industrial Engineer Mechatronic Engineer Engineer in Robotics UG GTO State University UP Politechnical Universties PN IPN UT Technical Colleges T Technological Programs UV Virtual University UN UNAM 9
10 AN INDUSTRY DRIVEN EDUCATIONAL SYSTEM 5Parks With Universities & Research centers Technological Food. Health, Agriculture and Biofuels Biomedical, Automotive, Mechatronics, Logistics, Digital Animation, and Design Energy, Bio-nanotechnology, Interactive Digital, Technology, and Tourism Automotive, Materials, Mechanics, Biosciences, Leather-Footwear and Environmental Design Social Innovation, Education, Health, Social Economy, Habitat 10
11 ABUNDANT WORKFORCE From 2005 to 2010, the youth population in Guanajuato (15 to 29 years) has increased by more than 182,000 people, which puts in 2nd place as the State with the fastest growth rate for young population, surpassed only by the State of Mexico. Economic Active Population larger than our 3 neighbor States together nd 2Place in Mexico with the fastest growth rate for young population 11
12 TOP DESTINATION IN MEXICO FOR FOREIGN INVESTMENT Is a regional leader in attracting investment 302 investment ( ) 13 different business sectors 94,592 New jobs Total Investment: $15.5 Billion USD 25 different countries 12
13 AUTOMOTIVE HIGHLIGHTS IN GTO STATE 42 USA companies $ 6,500 Mio. USD 16,200 New jobs 73 Japanese companies $ 5,100 Mio. USD 27,800 New jobs 25 German companies $1,900 Mio. USD 10,700 New jobs Investments in the last Auto Parts Sector 8 years in the Automotive and 140 Investments $ 13 billion 500 MDD (73% of Total) 54 thousand 700 new direct jobs (58% of Total) March September
14 AUTOMOTIVE SECTOR 14
15 ECONOMIC OVERVIEW AUTOMOTIVE SECTOR March September
16 SOME OF OUR INTERNATIONAL PARTNERS 16
17 GERMANY PRESENT IN GTO 17 17
18 A PIECE OF JAPAN IN GTO 18 18
19 AMERICAN STRONG PRESENCE IN GTO 19
20 A 20 YEARS PARTNERSHIP BETWEEN GM AND GTO General Motors Silao Plant has generated a great synergy Guanajuato among the major tier 1 and tier 2 Suppliers. Area: 230hectares Investment: $800 million USD Direct jobs: 5,100 Production: 1 Truck per minute 280 thousand vehicles per year engines 400,000 transmissions in Chevrolet Avalanche, Chevrolet Silverado Crew Cab (export), Cadillac Escalade EXT, GMC Sierra Crew Cab, Cheyenne Crew Cab GM Silao holds the best level of GD Power Index rank and is the second best plant with the highest quality products worldwide. March September
21 FASTEST GROWING AUTOMOTIVE CLUSTER IN MEXICO Area: 254 hectares Investment: $770 million USD Direct jobs: 4,600 Plant capacity: 230,000 vehicles and Engines / year Product: Mazda 2 and Mazda 3 Market: Mexico and Latin America Start of Construction : September / 2011 Start of operations: 4th. quarter
22 FASTEST GROWING AUTOMOTIVE CLUSTER IN MEXICO Mazda in Salamanca 22
23 FASTEST GROWING AUTOMOTIVE CLUSTER IN MEXICO Test Track Suppliers Area Yard & Automotive Distribution Center Engine Plant Assembly plant Painting Shop Body Shop Stamping Shop Test & Assembly Corporative Building Parking Lot Internal Rail Yard Suppliers Area Bajio Industrial Park 23
24 FASTEST GROWING AUTOMOTIVE CLUSTER IN MEXICO 50,000 vehicles per year in the Mazda complex located in Salamanca (SCION MODEL) Toyota production will gradually increase up to the quoted figure of 50,000 cars per year, by end Toyota s production will be for Domestic market, as well as for exports to the U.S., and other countries. 24
25 FASTEST GROWING AUTOMOTIVE CLUSTER IN MEXICO Area: 566 hectares Investment: $1,270 Million USD Direct jobs: 4,700 Plant capacity: 200,000 vehicles transmissions / year Product: Honda Fit Auto Market: Mexico and Latin America Start of Construction : November / 2011 Start of operations: 1st. quarter 2014 HONDA FIT HONDA FIT 25
26 FASTEST GROWING AUTOMOTIVE CLUSTER IN MEXICO Honda in Celaya 26
27 FASTEST GROWING AUTOMOTIVE CLUSTER IN MEXICO Honda in Celaya Celaya South Highway bypass Yard & Automotive Distribution Center Transmissions Plant Internal Rail Yard Test Track Depot Warehouse Stamping Shop Painting Shop Parking Lot Assembly plant Engine Plant Training Center Canteen & Lockers Corporative Building Test & Assembly 27
28 AN STRATEGIC GERMAN PARTNER Area: 60 Hectares. Investment: 840 Million usd Jobs: 1,200 Project: New generation engines Plant Capacity: 500,000 engines annually Product: Auto Engine (High quality) Market: USA 90%, Mexico 10% Start of Construction: October 2010 Start of Operations: February
29 AN EXAMPLE OF GROWTH IN GTO Area: American Axle-Fipasi: 50 Hectares American Axle Colinas: 10 Hectares Investment: $950 Million USD Direct jobs: 4,000 Product: Axles, Gearboxes SOP:
30 ITALIAN PRESENCE IN GTO Area: 60 hectares Investment: 400 million USD Jobs: 1,400 Project: First factory in Mexico Plant Capacity: 5.5 million in 2017 Product: Tires Market: Mexico, Central America, Caribbean and USA. Start of Construction: Over 110,000 sq mt facility Start of Operations: Summer
31 A LONG TERM PARTNERSHIP WITH CONTINENTAL Area: Continental-Fipasi: 7 Hectares Continental Colinas: 5 Hectares Investment: $137 Million USD Direct jobs: 1,600 Project: Electronics & Brake Systems / HR and Finance Center for Nafta Product: Electronic suspension systems, anti-lock brakes, brake adjusters, brake pump cylinders 31
32 PROJECT BASED ON TRUST AND EXPERIENCE Area: 600 hectares Investment: $1,200 Million USD Direct jobs: 2,000 Plant capacity: 200,000 vehicles transmissions / year Product: Corolla Market: Mexico and Latin America Start of Construction : 1 st.quater/ 2017 Start of operations: 1st. quarter
33 OPENING OPERATIONS ON CENTRAL MÉXICO Ford Motor Company, will make investment of 1, 200 million dollars and generating 2,000 direct jobs for the construction of a new transmission plant in Irapuato. This is the fifth production facility in Mexico. The Irapuato transmission plant will have a production of 800,000 transmissions annually and serve the markets of USA, Canada, Brazil, Romania, Germany, Russia, India, Thailand and Vietnam. 33
34 IN MIDDLE OF MEXICO, A MIDDLE CLASS RISES In Guanajuato, Mexico, foreign investment and local enrichment are cultivating a young, upwardly mobile middle class. - Mexico is finally attracting the higher-end industries that experts say could lead to lasting prosperity - The automotive industry has been Mexico s brightest spot so far. In many ways, central Mexico has already surpassed Detroit. There are now more auto-industry jobs in Mexico than in the entire American Midwest. - Guanajuato also helps find candidates for companies to hire and, in some cases, gives them free classes to help them pass standardized tests required for employment. - Guanajuato even pays companies a small bonus for sending workers abroad for training. Testimony Mr. Zamora s VW Worker-- There s just a lot more opportunity to study and to succeed Mauricio Martínez, 29, an engineer at the Italian tiremaker Pirelli, which was one of the first companies to take up residence in the port, said he and his wife, Mariana, still saw their trip to Prague after his training in Romania as a fairy tale. 34
35 Guanajuato provides expatriates and foreign retirees, plus a unique cosmopolitan atmosphere, as well as a warm climate. Guanajuato city and San Miguel de Allende have been declared world Heritage by UNESCO. Our State offers a good number of international schools and a world class lifestyle. More than 21,000 permanent foreign residents who have chosen the state to live and do business, are evidence of the high standards of living of Guanajuato. Weather: min 50 F, max 77 F International events: FIA World Rally, fairs and conventions, International Balloon Festival, Cervantes Festival World class living standard: Residential Areas, Sports Clubs and Restaurants, Hospitals and medical services. Convenience: Leisure parks, World class, Shopping centers, Fine hotels, and restaurants, world class hospitals, services and schools. 35
36 THE TOP DESTINATION OF THE AUTOMOTIVE INDUSTRY IN CENTRAL MEXICO September 17 36
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