In a burst of unwarranted enthusiasm, Forbes magazine’s international automotive analyst, Joann Muller, announced gleefully that the rise of the auto-making business in Mexico represented not only more bad news for Detroit, but was the result of “wise trade policies south of the border.”
In the promotion for her article, Muller asked rhetorically: “Washington, are you listening?” She concluded that, if those trade policies, better known as the North American Free Trade Agreement (NAFTA), work so well for Mexico, Washington should do more of it for the United States.
Not a single word in her lengthy article was devoted to the real purpose behind NAFTA: a stepping stone to the North American Union (NAU), which would then be a step closer to the de facto creation of the New World Order that NAFTA’s proponents have for years been working behind the scenes to achieve.
Mueller noted that in the last five years, new car and truck production in Mexico has nearly doubled, from 1.7 million vehicles per year in 2009 to an estimated 3.2 million vehicles in 2014. Companies such as Volkswagen, Infiniti, Mercedes-Benz, BMW, and Hyundai have been pouring billions into new plants in Mexico, and it’s all because of those free trade agreements Mexico has with some 44 countries, according to Muller. The United States, on the other hand, has agreements with just 20 countries which, according to Muller, explains the exponential growth in Mexico in the auto business over the last five years compared to the United States:
The result is what you’d expect. 80% of the cars built in Mexico are exported to other countries, about two-thirds of them to the United States….
In recent weeks Infiniti, Mercedes-Benz and BMW have all detailed plans to build cars in Mexico. Hyundai-Kia is expected to announce a plant any day. Audi, meanwhile, is midway through construction of a $1.3 billion factory that will build luxury SUVs in Mexico starting in 2016.
Currently the world’s eighth largest auto producer, Mexico is on pace to surpass Brazil this year. By 2020 Mexico should be number six behind China, the US, Japan, India and Germany, with an annual production of 4.7 million vehicles.