Highlights of Mexico Automotive Summit 2015 - Mexico Business Events (mbe)
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Mexico Automotive Summit 2015 and the concurrent launch of the highly anticipated 2015 edition of Mexico Automotive Review was undoubtedly a resounding success. More than 350 guests filled the Independence Hall of the Sheraton Maria Isabel hotel in Mexico City in order to hear what the industry experts had to say about Mexico’s future with automotive manufacturing, trade, and investment, as well as to develop promising new business relationships with fellow industry members.

Mexican Automotive Industry: Investment & Competitiveness

Mexican Automotive Industry: Investment & Competitiveness

Mario Chacón Carrillo, Head of the Investment Promotion and International Business Unit at ProMéxico

Opening the proceedings was Mario Chacón Carrillo, Head of the Investment Promotion and International Business Unit at ProMéxico. The first focus of his presentation enforced the idea that Mexico is, without a doubt, a vital investment destination for large OEMs due to “quality, just in time (JIT) systems, low-cost labor, human capital, R&D infrastructure, its strategic location, and the ease and capability of exporting to 46 countries.” Chacón Carrillo continued by informing us that Mexico is a rising star according to the Boston Consulting Group and, quoting other consulting firms, he showed how the country will become one of the eight largest economies by 2050. “Mexico has 46 free-trade agreements, which gives us a very competitive position over other countries. Thanks to the Trans-Pacific Partnership negotiations, Mexico will heavily increase its presence in the Pacific region,” Chacón Carrillo explained.

He then listed Mexico’s positive attributes, such as the country’s median population age of 28, and that local universities produce almost 115,000 engineers per year. These factors are pushing the country as the third high and medium technology exporter in the world. “The skilled human capital is one of the reasons that companies invest in Mexico,” he mentioned.

The automotive industry contributes 3% of Mexico’s GDP, and the country is the seventh car producer and fourth largest exporter worldwide. “Mexico produces to an extremely high-quality, evidenced by the fact that eight out of ten cars manufactured here are exported,” he continued. He then told us that OEMs have invested nearly US$31 billion in the last five years, and indirect investment in the automotive industry was US$4.4 billion in 2014. “By 2020 we expect a production rate of 1.8 million units. The Bajio region has grown very fast and there are lots of opportunities in stamping, semiconductors, design, die casting and almost all the processes required for the automotive industry,” Chacón Carrillo concluded.

The Impact of NAFTA on the Mexican Automotive Industry

The Impact of NAFTA on the Mexican Automotive Industry

Cate Luzio, Executive Vice President and Head of Global International Subsidiary Banking Client Coverage, HSBC Bank USA, N.A.

Taking the stage next was Cate Luzio, Executive Vice President and Head of Global International Subsidiary Banking Client Coverage, HSBC Bank USA, N.A. who endearingly began her presentation with an anecdote about her second day working with HSBC, during which her boss stated her primary focus was to promote the NAFTA region. Despite initially being unconvinced of its importance, Luzio says that she was proven wrong, having witnessed the phenomenal amount of exports leaving Mexico, especially to the US market. Of every five cars exported per minute, four are sent to the NAFTA region. Luzio expands on the importance of open borders and trade agreements, because in order to assemble a single car, auto parts must cross the border eight times. This has contributed to foreign direct investment into Mexico growing to US$60 billion to date.

It takes five days to move auto parts from Mexico to New York, whereas transport from China takes 32 days, such that delays in the supply chain can be greatly reduced if providers are based in Mexico. Furthermore, by relocating to this part of the NAFTA region, suppliers could reduce manufacturing costs by 5-25%. To help US and Canadian clients take advantage of this competitive advantage, HSBC has the largest foreign bank presence across Mexico and helps clients with more than just their banking needs, but providing creative solutions to help companies expand their business.

Over the last few years the local industry has regained status, according to BCG and to HSBC, as the high quality, low cost manufacturing location, because as wages rise in other emerging economies they remain stable in Mexico. Luzio closed her speech explaining that HSBC expects the exchange rate of the Mexican Peso to the US Dollar to remain fairly stable, and continue to help clients to understand currency issues and encourage investment.

Competitiveness of Mexico’s Automotive States

Competitiveness of Mexico’s Automotive States

Left to right: Javier Lomelín, Juan Carlos Pérez Rocha, Renaldo Bozic, and Jesus Cantú Rueda.

Our first panel of the day was moderated by Javier Lomelín, CEO of Colliers International LATAM, on the topic of theCompetitiveness of Mexico’s Automotive States. He started the discussion by asking the panelists which were the most relevant factors that made the Mexican automotive industry reach the current productivity levels.

Panelist Juan Carlos Pérez Rocha, Country Head of Large Corporate at HSBC Mexico, said the NAFTA agreement was the first factor that drove Mexico’s industrial success. Secondly, he stated that the country’s location is another decisive factor and, finally, the quality of the local talent. Renaldo Bozic, commercial manager of FINSA, added to Pérez Rochas’s answer that the different states have been proactive to bring new companies to Mexico. “Mexican workforce is not only competitive, but it is also classified as one of the best worldwide,” concluded Jesus Cantú Rueda, Undersecretary of Investment and Industrial Promotion from the Secretary of Economic Development in Nuevo Leon.

Lomelín explained that the local labor force is considered the main reason for Mexican competitiveness; nonetheless he argued that Mexico cannot rely solely on this situation. According to Bozic, the country should start providing added value to products manufactured in Mexico. For instance, every car produced has only 30% of local raw material, and usually 90% of the supplies are imported. “If we could reach 100% of Mexican materials, that would be a competitive advantage,” Bozic indicated. Pérez Rocha added that there are two other issues to be addressed, the first is to help OEMs and suppliers to locate in new areas, and secondly to push for market diversification outside the NAFTA region.

Regarding market diversification, the TPP agreement’s impact on the automotive industry created controversy, and both Pérez Rocha and Cantú Rueda perceive it as an opportunity for the Mexican producers. “These treaties position Mexico worldwide,” said Pérez. “Mexico was not included for the TPP agreement, however we raised our hands and were accepted mainly because we are the easiest door to the US market,” Bozic declared.

Cantú Rueda made the final point of the discussion, regarding the efforts of the Nuevo Leon government to introduce the cluster strategy eight years ago by helping large companies develop their supply chains, as well as aiding each fleet’s operational cost with more than 25,000 minimum wages.

The Effect of the Fiscal Reform on the Automotive Industry

The Effect of the Fiscal Reform on the Automotive Industry

Mario Hernández, the Leading Partner of the IMMEX Segment at KPMG

Mario Hernández, the Leading Partner of the IMMEX Segment at KPMG followed the first panel with a presentation on the Effect of the Fiscal Reform on the Automotive Industry. Hernández stated that speaking of fiscal issues is never pleasant; however it is always necessary to analyze them when it comes to investments. The 2014 fiscal reform was due to the government’s need to increase tax collection and the pressure that international organizations, such as the OECD, put on Mexico to eliminate non-justified benefits.

The effects of the reform established income tax at 30% and new dividend duties that could directly affect local competitiveness. “Obviously, these limitations represented an increase to operating costs in Mexico as well as a threat to new investments,” Hernández explained.

The KPMG partner mentioned that the TPP agreement will be useful for Mexico to sell to new markets, though new players might risk local industry development. The changes to Mexico’s regulatory framework have made it more competitive among the OECD countries, a very positive note to end the presentation on.

Impact of Technological Advancement of Supply Chain Cooperation & Integration

Impact of Technological Advancement of Supply Chain Cooperation & Integration

Left to right: Antonio Herrera, Erwin Polo Feldmann, Oscar Albín, Frank Hezel, and Mario Rodríguez.

The summit’s following panel was facilitated by Oscar Albín, Executive President of INA, who presented the topic of innovation in manufacturing and the panelists. Mexico is competing with other emerging economies for the top position, but has shown to be a successful manufacturing country thus far, especially in the automotive sector.

Mario Rodríguez, CEO of Arbomex, a company with expertise in powertrains and combustion, “chose a model of ceaseless innovating in order to be able to compete,” and have invited schools and employees to contribute to innovations in both design and processing. Frank Hezel, Vice President of BASF’s Coatings Division in Mexico and Central America, also cited innovation developing human talent in the region via universities and suppliers. Both Arbomex and Tremec have taken risks and invested in expensive prototypes to be able to gain contracts with OEMS. Antonio Herrera, Managing Director of Tremec, entered the discussion sharing that by creating prototypes they were able to see that technology was not keeping up with their ideas or innovation, so the company invested in equipment in order to be able to produce the latest technology.

Rodríguez referred to a company that benefited from investment in innovation, who requested quotes for welding for parts. BASF was able to reduce the total cost of parts for this company by 30%, and reduced weight from 7kg to 5.2kgs. “BASF is trying to move from creating commodities to tailored products,” expands Hezel.

Another company that continues to invest in human capital is Gestamp, which has R&D centers across five continents, to cater to vehicle OEMs and regulations that demand increasingly high quality standards. Erwin Polo Feldmann, the Vice President of Gestamp Mexico mentioned that short term cost can discourage companies from investing in innovation, but that Gestamp has continued to push to meet security standards, while taking risks in developing technology in order to stand out in the industry interested in new industries. By working with CONALEP and the Technological College of Puebla, among others, 80-100 undergrads are inserted into sophisticated 18 month apprenticeships. Gestamp allocates positions in Spain, Mexico, US or Switzerland to 50 students that are chosen as new hires. This type of program has a huge short term cost, and Polo Feldmann alluded to the companies’ concern as to whether graduates will be loyal to the company in order to return the investment through innovation at a later date.

The moderator, Albín said that clients are not always willing to pay for innovation, unless it is hidden in the final price. This is creating a gap in the auto parts industry as more technology is being developed while lower costs continue to be demanded.

Hezel touched on the problem of the lack of second language speakers, “BASF expects the demand to grow for engineers that can speak more than one language.” Various companies are actively working with universities in order to correct this, communicating the needs of the industry, but an entity that speaks on behalf of the industry as a whole is still needed. Having mentioned that Mexico exports talent and that labor mobility is very high, he warned of the danger of young workers looking for opportunities abroad leading to the industry losing valuable workers.

Herrera, who also represents the Queretaro cluster, explained that Tremex is facing a challenge of mobility in the Bajio region, resulting in a huge demand for Human Capital. Herrera insisted that the industry specialists cannot wait for the government to do everything. Companies have a responsibility to develop human capital and fulfill the deficits left in educative institutes when government funds cannot.
Rodriguez commented “the government of Celaya created a Mexico-Japan alliance 25 years ago to develop talent, creating the degree of Technician, which resulted in the government requesting 9,000 technicians in 2014.” He agreed that entrepreneurs and companies are responsible for developing talent, not just the government.

Albín concluded by mentioning the 0.4% of GDP that is reinvested in R&D in Mexico, which is insufficient compared to other countries. In defense of the low level of investment in Mexico, Herrera suggested that the economic situation has not made R&D any easier, and pointed out that Tremec, for example, has already begun to increase this, using investigation centers such as CEDESI more intensely. “We have already seen excellent results, but positive results see a time lag of a few years and must include this in their long-term plan.”

Mexico HD Truck Market Overview

Mexico HD Truck Market Overview

Ignacio García, Vice President of Mexico and Latin America at Cummins

Speaker Ignacio García, Vice President of Mexico and Latin America at Cummins started his presentation on Mexico’s Heavy Duty Truck Market by saying that eight out of ten trucks in Mexico use a Cummins engine. He followed on by explaining that the company’s local sales were close to US$900 million and exports reached US$1.2 billion. According to García the US market is shrinking and the demand outlook is not optimistic for the next year. However, for the last two years, Cummins production has increased by almost 50%. Today, 73% of Cummins trucks are exported to satisfy 50% of the US demand. García also explained that Mexico is the seventh truck manufacturer in the world but is second in the freight market for local distribution and transportation just behind Germany.

According to the Vice President of Cummins, 40% of the trucks in Mexico are more than 20 years old. This situation is worsened by the 17,000 old, imported trucks bought from the US that enter the country without regulations. However, he insisted that emissions restrictions might change this situation. “Mexico is committed to improving its environment and will cope with US and Europe’s emission target by 2020,” he explained.

Lastly, García addressed the lack of fuel innovations for modern engines. New engines use a specific type of diesel that is only present in 30% of the Mexican territory, which is slowing down the introduction of new technology. “As soon as the required diesel is available the new technology will to improve the environment and the transport industry with less fuel consumption and emissions.”

Changing Nature of Aftermarket and Aftersales Services

Changing Nature of Aftermarket and Aftersales Services

Left to right: Gerardo Varela, Enrique Enrich, Pedro Albarrán, and Andrés Lerch.

Once the first networking coffee break had concluded, attendees were invited to observe a panel discussion about the changing nature of aftermarket and aftersales services. Moderating the panel was Gerardo Varela, Director General of ZF Services Mexico, Central America and the Caribbean, who opened the discussion with the statistic that 54% of the vehicle park in Mexico is counted as legal market, the other 46% represents imported vehicles from the US but do not meet safety standards in Mexico. The panel agrees that it is in auto makers’ as well as clients’ interests for all the vehicles in Mexico to be the best state possible. Andrés Lerch, Advisory Partner and Leader of the Operations Transformation Area at Ernst & Young’s Mexico Automotive Center, confirmed that “maintenance is not carried out as much as necessary, because of a cultural habit.”

Varela followed up by stating “Twenty years ago, the aftermarket was in the distributors’ hands, but this has changed as a result of an informal aftermarket, as have warranties, which have increased from one-year warranties to three or even five years for certain brands.” Pedro Albarrán, Director General of Hyundai Motor de México then pointed out that Hyundai’s five-year guarantee helps retain clients, as well as announcing a new initiative to replace two tires per year for new clients that will be launched this year. Lerch believes that clients need to be pushed toward the original manufacturers, to increase the 57% of customers that buy cars based on the brand’s post-sales service. However, “only 10% of vehicle owners use dealership workshops for MOTs,” explained Albarrán.

Enrique Enrich, Director General of Scania joined the debate saying that while the vehicle park is not increasing, customer loyalty is subject to change. “The 53 different brands in Mexico are all competing to offer the best possible service to light vehicle customers, so customers should not continue to be the only demographic concerned with vehicle maintenance.”

Following the JIT logistics trend, Hyundai has been able to reduce the need to stock three months of repair parts in workshops that was true in the past, only requesting 20 days’ worth of products via distribution centers. “These centers can cover 97% of requests, increasing the speed at which dealerships can conduct vehicle services,” stated Enrich. Technological advances allow companies to know what parts will need to be changed and have them waiting for a client when they arrive at their nearest dealership, in the exact bay where the car will be received.

In the US, 38% of clients service their vehicles at dealerships, but the 10% that do so in Mexico need to be increased. Lerch explained that repair kits can be ready and waiting for clients, and payment and part registry is automated such that clients leave the dealership with a good impression. “As more clients attend dealerships for vehicle services, they tend to recognize the quality and return for the next service,” expands Lerch. Clients are becoming more informed, and this is reflected in internet vehicle purchases, which is expected to increase in the near future, according to Varela. Lerch estimates that customers take around 12 hours to decide which vehicle to purchase, but that this will increase facilitated by the availability of information on the internet. Varela concluded the panel by predicting an important change in the aftermarket segment as a result of the reduction of the informal market, in the hopes that car dealers will be able to retain their clients for much longer.

Ambitions and Priorities of Mexico’s Light Vehicle OEMs

Ambitions and Priorities of Mexico’s Light Vehicle OEMs

Left to right: Eduardo Solís, Leo Torres, Edgar Zambrano, and Emmanuel Domínguez.

The next and perhaps most highly anticipated panel was Ambitions and Priorities of Mexico’s Light Vehicle OEMs, with AMIA’s executive president, Eduardo Solís, acting as moderator of the discussion. Solís started the panel by stating that the automotive industry’s current focus is on the supply chain and the development of human capital. The moderator recalled that Mexico became the first car manufacturer in Latin America in 2014 and the seventh in the world producing more than 3.4 million vehicles. However, the challenge is to manufacture up to 5.2 million units by 2020 and to export 4 million of those light vehicles. The opportunity is humongous and local SMEs want to be part of this development, yet they usually do not know where and how to start.

Leo Torres, Purchasing Director and STA of Ford de México replied to this issue by explaining that the first step for any company that wants to become a supplier is that they should have clear objectives such as defining themselves as Tier 1 or Tier 2, as well as establishing which segment will they focus on. “Of the 100% of suppliers that have failed in the industry, 90% of them did so because they did not plan or foresee changes,” Torres said.

Panelist Emmanuel Domínguez, Powertrain Supplier Development Director of General Motors de México, intervened and said that half of Mexico’s produced cars have 50% of local raw materials, but that for 2020 he expects that each car will have 90% of local materials. The main risk for suppliers, according to Domínguez, is that automotive suppliers often want to do more than their capacity allows. “If smaller companies want to be part of the automotive industry they should clearly specify their advantages such as quality, capacity, and delivery time,” he suggested.

The moderator moved forward to the subject of human capital flow and specifically appointed to Edgar Zambrano, Human Resources and Labor Sr. Manager of KIA Motors México, to elaborate on this issue. Zambrano explained that the first challenge for KIA is to acquire the right personnel since they are establishing in a region with no OEMs but with lots of experience in the manufacturing and industrial sector. “I’ve discovered that I am purchaser myself, but for the most important asset of the company: its people,” he pointed out. Torres completed his idea by saying that the most relevant asset of any business is not just the people, but the qualified people.

Eduardo Solís then emphasized the importance of the triple helix cooperation between the educational system, the government and the automotive industry. Domínguez suggested that the next trend in Mexico’s industry will be automotive design and specific engineering, hence school cooperation is a cornerstone for development.

The final topic was centered in the alleged low cost labor that Mexico offers to OEMs. AMIA’s president had a cutting answer: “if the investments in Mexico depended only on cheap labor there would be new plants opening in Nicaragua or Guatemala, the country’s success comes from a robust supply chain and qualified workforce.” Edgar Zambrano completed the idea with other factors such as Mexico’s strategic position. “Mexico has a qualified workforce, which is not cheap but allows companies to be competitive.”
A revolutionary idea arose during the final stages of the panel concerning all automotive players. Large OEMs and Tier 1 suppliers have an urge to develop a more cooperative environment to get strong public and private investments in raw materials plants and factories, as Germany did several years ago. Torres said that car buyers do not usually care what kind of steel their car is made of, so if all OEMs could organize to have the commodity nearby instead of importing it then they would make manufacturers more efficient.

Key Trends in the Consumer Market for Light Vehicles panel

Key Trends in the Consumer Market for Light Vehicles panel

Left to right: Guillermo Rosales, Carlos Alberto López de Nava, Luis Gerardo Sánchez, Fernando Gómez Arreola, and Marcio Hociko.

Covering the key trends in the consumer market for light vehicles, the next panel was moderated by Guillermo Rosales, Director General of AMDA, who opened by saying that Mexico has an annual consumption of 10 vehicles per 1,000 inhabitants. According to studies carried out by AMDA, demand in Mexico ought to reach 1,300,000 vehicles by the end of 2015.

Carlos Alberto López de Nava, Director General of Alden commented on the fact that companies are trying predict the future in order to preempt the innovative products of their competition. Alden has not yet suffered from the recent increase in consumption and has kept up with demand, but can recognize that they are dealing with a market dominated by the consumer. “Consumers are more informed and expect what they want to be available immediately, logistics companies and OEMs have to adjust their customer services accordingly,” said López de la Nava. “Services will become more affordable in dealerships, which follows in Honda’s footsteps as pioneers of establishing very cheap services.”

“When a client receives good customer service, the probability of them actually purchasing a vehicle doubles,” said Luis Gerardo Sánchez, Managing Director of Volvo Car México. The vast majority of people who are dissatisfied with customer service in dealerships do not tend to come back. López de Nava explains that another market tendency will be an increase in the number of alliances and automotive groups, because it is natural for companies entering a new country to look for partners that already understand the economy.

Rosales then explained the complications involved in the premium car market in a country like Mexico. He invited suggestions from Volvo regarding the necessary steps that need to be taken in order to compete. Gerardo Sánchez commented that the difference in volume is considerable. In response to a much smaller market for the premium sector, brands are becoming more flexible in their prices, lowering them to people who would not normally enter the market. The biggest change is the access to credit, which allows people to access a range of premium vehicles. “We have recently seen increased trust in the premium market,” he commented. “The next challenge is meeting customers’ expectations of differentiation in terms of quality and customer service.”

“The profile of the Mexican consumer is a person between 25 and 40 years preferring to acquire a car of around MX$200,000, but this is changing as younger drivers purchase cars and commercialization is changing in response,” explained Rosales. Fernando Gómez Arreola, CEO and Co-founder of Nexu commented that the internet is changing the way people purchase cars. “Nine out of ten people researching a new car, research online.” The rise of smartphones is increasing consumer knowledge. As interest rates lower, leasing and purchasing cars with credit has become a more accessible option for a greater portion of the demographics. The increasing proportion of people with income to buy cars for their family reflects a more developed country, and the average age of Nexu’s clients is 29 years.

Marcio Hociko, Operation Director of LeasePlan Mexico, concluded the panel by explaining that the traditional model of financing has a limit, leading to the arrival of more leasing companies. He also noted that leasing levels could reach 55%, depending on the fiscal benefits applied, and that Mexican companies retain the culture of buying, and there is a lot of ground to gain to change this mentality.

The Future of Urban Mobility

The Future of Urban Mobility

Left to right: J. Arturo Zapata, Eugenio Paci, Diego Solórzano, Ricardo Weder, and Luis Enrique Fuentes.

To kick off the panel for the subject of the future of urban mobility, Moderator Arturo Zapata, Executive President of Zapata Corporation asked architect Luis Enrique Fuentes, the mastermind behind the planning of the capital’s mobility evolution, to explain the Secretariat of Mobility’s vision. “The city has broken several paradigms. On July 2014, with the publication of the Mobility Bill of Mexico City, pedestrians gained a new position and soon pedestrian mobility will be a human right,” Fuentes explained.

Mexico’s capital is the third largest city in the world with more than 1,100km of roads. This year, the Metrobús system will conclude its sixth line, surpassing other cities in the world and achieving international awareness. According to Fuentes, the Mobility Bill is not politics against cars, but simply new considerations for its usage.

Panelist Ricardo Weder, CEO of Cabity Mexico, then argued that there is an excess of vehicles in the cities and that budgets are no longer enough to address this problem. “Technology has lots of proposals but it is also a matter of general culture, we want to let people know that it is no longer necessary to own a car and the solution is to use all the existing alternatives,” Cabify Mexico’s CEO explained.

Diego Solórzano, Director General of Carrot explained that car sharing started more than 40 years ago in Switzerland and is a common mobility alternative in more developed countries. He also explained that the automotive industry will change the view of cars, helping them to become more of a service than a need.
Panelist Luis Enrique Fuentes then mentioned that for 2050 more than 70% of the population will be concentrated in cities, but in the meantime, there are more than 22 million daily trips in Mexico City, with 45% of those being within the public transportation system. Eugenio Paci, Government Relations Senior Corporate Manager of Navistar Mexico, said that if Mexico City were to replace the 25,000 old microbus fleets then the accident rate would certainly lower and pollution might diminish. “Bus manufacturers work together with the government and aid carriers with leasing and other financing solutions,” Paci said.

Navistar’s manager then explained that while the use of natural gas for vehicles faces problems, there is a future advantage for this technology. “Natural gas is 60% cheaper than diesel and 40% cleaner,” Paci said. Weder intervened and said that building more streets is not an actual mobility alternative, but what would really change the situation is there were fewer cars.

Finally, the DF government representative in the panel, Luis Enrique Fuentes, mentioned that demand for Ecobici has grown so that people can use it for 45 minutes instead of 30. Solórzano, founder of Carrot México then concluded by suggesting that there should be more incentives to make people change their mindset and transform the landscape of the cities to make them more livable.

Formula 1 in Mexico

Formula 1 in Mexico

González Compean, Director General of Formula 1 Grand Prix Mexico.

The final presentation was conducted by Formula 1, which opened by highlighting how the use of Ticketmaster has led to the sale of 14 million tickets every year, which in turn led to the opportunity of managing the Formula 1 in Mexico. “Having closed a deal with Bernie Ecclestone, we kept up an incredibly fast rhythm to get the platform ready in time for the event,” explained González Compean, Director General of Formula 1 Grand Prix Mexico.

The coordination for the Formula 1 at the Foro Sol is the icing on the cake of all the other events organized, including Nascar. Ocesa Seica is the 3rd promoter in the world and has 13 years of experience in the automotive industry, preparing the company for the opportunity to welcome the Formula 1 back to Mexico after 23 years. González Compean stated that “Formula 1 will be a stepping stone for Mexico City.”

In preparation for the race, the existing track’s curves were softened a little and the principal stands for the audience were extended. A completely new building that can hold 5,000 people, the Paddle Club, and a fence of 4.8km surrounding the full track were also constructed. Final touches are being added to the Paddle Club building and the 13 stands that will house 30,000 people, which will be finished in the next few days. Ticket holders will enter the Foro Sol via the Palacio de los Deportes.

Eighteen thousand jobs will be created for the weekend of the Formula 1, and 500 million television viewers are expected to watch the race. No parking will be provided, so the Formula 1 is encouraging people to travel via metro or bus to the event. This location has three extremely close metro stations and two Metrobús stops within 0.2–1km of the track. González Compean also mentioned that the authorities are already planning to provide further chartered transportation to the event to support this initiative.

Mexico Automotive Summit

As informative and interesting as they were, Mexico Automotive Summit was not only about the conferences. In between panels, the attendants had several networking opportunities during three coffee breaks sponsored by Hellmann Logistics. The guests had the chance to meet potential new clients or partners from all levels of the automotive supply chain, contributing to the development of the Mexican industry. Additionally, the networking area was further improved by stands from some of our leading sponsors including HSBC, Autoplaza, Formula 1, DHL, Advanced Business Events, Hellmann, BASF, and Ernst & Young. These companies were able to contact the main leaders in the industry, offering them the best solutions in areas like technology, financing, logistics, and consulting. Furthermore, the stand from Formula 1 offered tickets for the Mexico Grand Prix, while Advanced Business Events promoted the next Automotive Meetings for 2017.

Automotive Meetings for 2017

Once all the panels and conferences were over, it was time for the networking cocktail sponsored by Ernst & Young. This offered our visitors one last networking space, where they could also enjoy drinks from a mixologist brought by Hennessy. However, before the cocktail advanced, Autoplaza gave away wine kits to two lucky guests, while DHL, Hellmann, and Formula 1 sponsored several other prices. DHL raffled two Formula 1 collectible model cars, Hellmann handed out a collectible model boat, and Formula 1 presented two tickets for the three days of the Mexico Grand Prix. Fabio Negrao from Atlas Copco and Thys Buirma from Orange Innovation were the DHL winners, Paul Calhoun from Inteva got Hellman’s collectible boat, and Jorge Almanza from ALMU Logistics was the grand winner of the night with the two tickets for Formula 1.

As the night came to an end among friendly drinks, several guests commented on the success of the event. Most participants complemented on the panelists and the conferences, many of whom shared their excitement about the new business opportunities they could land. Overall, Mexico Automotive Summit was considered a grand achievement. We are very grateful to all of our sponsors including HSBC, Autoplaza, Formula 1, Atlas Copco, DHL, KPMG, NR Finance, CH2M, CTS Embarq, FINSA, Advanced Business Events, Hellmann Worldwide Logistics, BASF, and Ernst & Young, and we are sure the following editions will continue with the tradition of successfully sparking of industry collaborations and analyzing industry advancements.

Our Networking Cocktails are a must for C-level professionals who want to expand their business, improve their contacts or who simply want to gain insights from other key stakeholders in their industry. By invitation only, these exclusive events provide enhanced networking and put you in front of the people and businesses that matter to you. Organized around specific topics and themes, our intimate Networking Cocktails are a value-added opportunity to discuss the latest trends and strategies impacting your sector.

Let us help you open doors to fresh opportunities.

Mexico Automotive Summit brings together the most influential business and political leaders in the Mexican automotive industry, including the interviewees featured in Mexico Automotive Review 2019. Register now or risk missing this opportunity to get the inside perspective and network with the industry’s main stakeholders at this high-profile conference and networking event.

Register today and join us on September 11, 2019