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Production vehicles: Mexico soon outpace Canada

Mexico is about to get ahead for the first time Canada as the second producer of motor vehicles in North America, behind the United States.

According to a compilation of the first five months of the year 2008 conducted by analyst Dennis Desrosiers automotive world, some 2.26 million vehicles will be produced in Mexico this year compared to 2.09 million in Canada, its lowest level since 1992.

Meanwhile, production of vehicles in the United States is on track to be at its lowest level since 1961, 7.96 million vehicules.Il 20 years ago, in 1988, 1.97 million vehicles were out of Canadian plants, compared to 512,000 of those in Mexico.

Prospects for long-term production promote Mexico at the expense of Canada. Mexican plants produce more vehicles subcompact that consumers are now more keen because of the rising cost of carburant.Ford has already begun to invest U.S. $ 3 billion to Mexico for the upcoming assembly of the small Ford Fiesta invade the North American market in 2010. As a General Motors (GM), it spends U.S. $ 650 million the eventual assembly of two subcompact, the Chevrolet Aveo and Pontiac Wave.

Several Canadian plants, for their part, still produce large inefficient vehicles for which demand continues to decline. In addition, the costs of labor are lower in Mexico.

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