AUTOMOTIVE SUPPLY CHAIN TRADE MISSION

TO MONTERREY & SALTILLO, MEXICO

September 19-22, 2004

MISSION DESCRIPTION

The U.S. Commercial Service of the International Trade Administration , U. S. Department of Commerce is organizing a trade mission to Mexico , which will visit Monterrey and Saltillo, September 19-22, 2004 for U.S. companies in automotive supply chain.   Participating U.S. companies will benefit from briefings by local experts on the Mexican market and pre-scheduled, pre-screened one-on-one meetings with Mexican companies.

Building upon the success of the September 2003 Automotive Supply Chain Trade Mission to Central Mexico (Aguascalientes and Silao), this mission to northern Mexico aims to capitalize on the anticipated industry rebound and increased sales opportunities for U.S. automotive supply chain providers.  

Mexico is considered one of the Western Hemisphere’s most important automotive industry manufacturing platforms.   The Mexican automotive industry represents 20% of the country’s total manufactured exports.   In 2002, Mexico produced 1.7 million vehicles, of which over 80% were exported.   Mexico is Latin America’s top motor exporter, the world’s tenth largest producer of light vehicles, and the second largest importer of U.S.-made auto parts.

In recent years, the Mexican auto industry has created substantial sales opportunities for U.S. companies.   Mexico’s 1,350 direct 1 st, 2 nd, and 3 rd tier suppliers imported US$22.8 billion in materials, equipment and parts, representing 7% of Mexico’s total imports in 2002.   That same year, the auto industry accounted for 3.5% of Mexico’s GDP and 19.3% of its total manufacturing output.  

The world’s largest automotive players have manufacturing facilities in Mexico, located primarily in northern and central Mexico.   Although production has contracted by 3% since 2001, industry experts anticipate that the temporarily weakened market will restore itself in 2004.  

The Monterrey and Saltillo metropolitan regions have become major automotive parts manufacturing hubs.   Component manufacturers located in the area supply major automotive assembly plants throughout Mexico.

Greater Monterrey, home to 4 million people, is considered Mexico’s industrial powerhouse.   Well over 100 auto parts manufacturers are active in the region.   Additionally, there are hundreds of other types of suppliers providing assembly processes for component manufacturers that aren’t necessarily considered direct suppliers to the auto industry.   Monterrey’s home-grown successes include NEMAK, a major producer of aluminum heads and blocks, and METALSA, Latin America’s largest manufacturer of small truck and car chassis.   Other prominent firms in Monterrey include IMSA Enertec (car battery manufacturer), Carplastic-Visteon (plastic injection parts), and Delphi (automotive electronics for GM and other brands).   Finally, Navistar buses, Freightliner trucks, and Volvo and Mercedes class 8 trucks are assembled in Monterrey.

Saltillo, the capital of Coahuila, is located an hour west of Monterrey.   This city of 1.2 million is home to two of the largest auto manufacturing and assembly plants in Latin America.   GM has three divisions in Saltillo, engaged in motor and transmission assembly, body part stamping, and car assembly.   Daimler Chrysler also has two plants in Saltillo, both in the midst of a major expansion due to the company’s decision to close its Mexico City operation.   One of Daimler Chrysler plants assembles Dodge Ram trucks.   The other focuses on engine assembly.   These plants are served by a large number of Mexican, U.S., European and Japanese companies. The new suppliers are regularly being attracted to Saltillo, encouraged by a series of expansion announcements including Toyota’s US$800 million assembly plant in nearby San Antonio, Texas.

The mission goal is to increase the mission members’ exports of products and services to the automotive industry clusters in Monterrey and Saltillo by providing market information and key contacts in this growing sector.   Opportunities are available for U.S. suppliers of process engineering design, sub-assembly, stampings, tool and die maintenance and fabrication, plastic component parts, progressive stamping dies, cutting tools and lubricants, industrial safety equipment, process controls and testing equipment, and general industrial supplies.

Mission members will meet with potential partners and buyers in both cities at local manufacturing facilities.   Additionally they will meet with manufacturers’ associations and government officials to learn about the local market and sales opportunities.   The precise schedule will be structured based on specific goals of the mission participants and availability of local government officials.

Day One (Sunday, September 19 th)

Arrive Monterrey / Hotel check-in / Evening organizational meeting

Day Two (Monday, September 20 th)

• Commercial briefing with U.S. Commercial Consul, industry association, and local international trade experts.
• 4-5 Gold Key Service meetings with potential partners or customers (translators and taxi provided as part of Gold Key Service).
• No host dinner

Day Three (Tuesday, September 21 st)

• Hotel check-out.   Transportation via executive bus to Saltillo.  Travel time is approximately one hour.   Hotel check-in in Saltillo.
• Business briefing with local industry representatives and government officials.
• 4-5 Gold Key Service meetings with potential partners or customers (translators and taxi provided as part of Gold Key Service).
• Dinner in Saltillo (Probable reception by Saltillo Economic Development Secretariat or a private industrial group.)
• Overnight in Saltillo

Day Four (Wednesday, September 22 nd)

• (Optional)   Tour of General Motors or Daimler Chrysler plants.                        
• After lunch, travel back directly to Monterrey’s airport

Travel time to airport is approximately 1 ½ hours from Saltillo

Completion of trade mission.   Return to U.S.

For those people who do not wish to stay overnight in Saltillo, we can arrange transportation back to Monterrey on Tuesday. The group will travel back to Monterrey   on Wednesday to board flight back home.   Please note that each person will have to cover this additional transportation cost.

• Relevance of a company’s product line to automotive industry base of suppliers;
• Potential business in the Mexican market;
• Provision of adequate information concerning company’s primary market objectives in order to facilitate appropriate matching with potential business partners;
• Maximum of 15 and a minimum of 7 participating companies;
• A timely receipt of company’s signed participation agreement, including a participation fee of US$1,995 (plus $200 per additional participant from the same company);
• Recruitment will begin immediately and the registration deadline is August 6, 2004;
• Applications received after this date will be considered on a space available basis.

Event participants will be recruited by the U.S. Commercial Service in accordance with the objectives of the mission statement. Any company interested in participating and that meets the U.S. Department of Commerce (USDOC) participation guidelines is eligible to participate, subject to CS Mexico’s determination that there is a market for their product or service in Mexico.

As per USDOC participation guidelines, U.S. companies wishing to participate in the event must certify that their goods and services are either manufactured or produced in the United States, or if manufactured or produced outside of the U.S., they must certify that the goods and services are marketed under the name of a U.S. firm and that the final product has at least 51 percent U.S. content.

Recruitment of U.S. firms will be conducted in an open and public manner, including promotion through the U.S. Commercial Service network and direct contact with trade associations throughout the United States. This event will be listed in the Federal Register and on International Trade Administration’s home page: www.ita.doc.gov/doctm/tmcal.html

Any partisan political activities (including political contributions) of a U.S. firm are entirely irrelevant to the event selection process.

Ellen Lenny-Pessagno
U.S. Consulate General
Commercial Service
Monterrey, Mexico
Ph. +52 (81) 8343-4450 / 8345-2120 x495
Fax. +52 (81) 8342-5172
Email: elennype@mail.doc.gov