Trade Agreements Place Uncertainties on Mexican Auto Market - just-auto.com

    LONDON, July 20 http://www.just-auto.com -- Mexico has become a
growth pole for automobile production in North America over the last ten
years.  The impact of trade agreements on the Mexican auto industry and market
-- notably NAFTA -- is well documented.  However, there are additional
uncertainties in the future posed by trade agreements according to Arturo
Elias, President, General Motors de Mexico.
    Speaking exclusively to just-auto.com in an interview published on the
industry website, Elias said:  "Two issues stand out.  First, 53% of the
passenger cars that we sell in Mexico are in the mini/economy segment, i.e.
entry-level vehicles like our Chevy and Monza (Corsa platform), Ford's Fiesta
and Fiesta Ikon, Nissan's Tsuru (old Sentra), Volkswagen's Pointer and Seat's
Ibiza and Cordoba.  All of these have major production centers in MERCOSUR
(Brazil) and Europe.  As a result, the outcome of future negotiations with
these trade blocs will affect Mexican market dynamics in 2005 and beyond.
    Second, the real impact of NAFTA will be felt between 2004 and 2009, once
free trade in both new and used vehicles is implemented; 2009 is an especially
crucial date because that is when used vehicles can be imported without
restrictions.  And, it is likely that many of these passenger cars will
compete directly with the new entry-level vehicles that are sold in Mexico."
    The full transcript of the interview is available to subscribing members
at: http://www.just-auto.com/features_detail.asp?art=532&app=1&fotw=sct .

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