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Nombre: Patricio Arrambide Martinez Matrícula: 2829002

Nombre del curso: Doing bussines Nombre del profesor:
in America

Módulo:1 Actividad: Assigment 2

Fecha: 8 de oct. de 18
Bibliografía: https://latinamericahoy.es/2012/04/17/el-sector-automotriz-en-
america-latina/

Objective.
To understand the term 'cluster' and how it impacts businesses and regional
economies.

Guidelines.
1. Apply Porter's Value Chain to the automotive industry in the Americas.
2. Research and highlight the Latin American locations that play an
important role in the industry.
3. Find which locations abroad are similar to those here in Mexico and
explain why.
Deliverable.
Make a diagram with your analysis, and a written commentary about the
importance of clusters in the Mexican automotive industry (400 words).

5 main producers of the automotive industry in Latin America

Mexico

The union's president, Eduardo Solis, mentioned that in production the volume
of units was 3 million 400 thousand and that grew by 5.6 percent compared to
2014. So, there was a rise in exports of 4.4 per Million, reaching two million 642
thousand 887 units.

The main export destination remains, as in other sectors, the United States,
with growth of 6.3 percent.
VW plant in Puebla, one of the largest in Mexico.

Brazil
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In compare, sales of Brazil fell 42 percent, according to experts at the same

levels as in 2006. In its total terms, the Brazilian industry had a reduction in its
production of 21 percent. Its sales to the United States fell by 42 percent and its
total production in 2015 was 2,333,903 units, which places it as second place in
the Latin American market. Until December, the Brazilian vehicle industry
directly employed 129,776 workers against 144,508 a year ago, a decrease of
10.2 percent.

Argentina

The years 2015 reported a decrease of 11.8 percent in Argentine production,

the worst level in the last six years. As for domestic sales fell by .4% and had a
production of only 543,467 units. Exports contracted 31.3% to 245,725 vehicles;
And sales to dealers virtually stagnated, as domestic production units increased
by 6.5% and imports declined by 5.4%.

Its main market is Brazil, with whom it is in the process of liberating the
commercial exchange in order to promote both industries.
Fiat plant in Ferreyra, Cordoba in Argentina.

Chile

In Chile the sale of new cars during 2015 was around 282,000 units although it
reported a fall of 16.4%. In fact, according to BBVA Research, in 2016 further
deterioration in the market is forecast for sales of 257,000 units, less than the
year 2015 when sales were marked by 282,000 units. According to BBVA
Research in the short and medium term the growth of the automotive market in
Chile looks hopeful. The ANAC is the one who watches over the interests of the
industry in Chile. The ANAC is the one who watches over the interests of the
industry in Chile.

Colombia

In Colombia, a drop of 13.2% was recorded in 2015 and this year it is estimated
a fall in sales of new vehicles to 260,000 units, 8.2% less compared to 2015
when there were 290,000 units sold, although 2015 also showed a fall Of 13.1%
compared to 2014, representing a total decrease of 42,756 units.

Renault Sofasa assembler in Colombia.

IN MEXICO
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Nuevo León

Auto Cluster CLAUT is a civil association comprised of Tier 1 auto industry

manufacturers and related academic and government institutions. Its goal is to
promote the integration of the auto industry, from vehicle manufacturers to Tier
1, Tier 2 and Tier 3 suppliers, including firms offering logistics, consulting and
other services geared toward the sector.

The Guanajuato Auto Cluster

This cluster is comprised of 297 companies, the most noteworthy of which are:
General Motors and Volkswagen in Sialo, Mazda in Salamanca and Honda in
Celaya, as well as reputable tire manufacturers like Pirelli and manufacturers of
auto parts, transmissions and components. Countries that have invested in the
state include Germany, Japan, United States, Italy, France, England, Spain,
Canada, Brazil, Holland, India, Taiwan, Switzerland, Sweden and Korea.

Estado de México Auto Cluster

This civil association is made up of OEMs, Tier 1, Tier 2 and Tier 3 suppliers,
consulting firms, logistics companies, customs agents and other service
companies that comprise the automotive industry value chain in the region. Its
goal is to promote the development of the sector and strengthen business
networks by connecting companies and advocating projects that trigger regional
growth and productivity.

Chihuahua Auto Cluster

The members of this association aim to consolidate Chihuahua as an excellent
automotive cluster that is open to growth opportunities for international
corporations seeking to join the supply chains of its affiliates. Other clusters The
Querétaro Auto Cluster features 15 founding companies, two educational
institutions, the Industrial Engineering and Development Center and the
Querétaro Science and Technology Board. The San Luis Potosí Auto Cluster is
a civil association that works to ensure companies operating in the state meet
international specification and certification requirements.
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Become part of the Trans Pacific Partnership to significantly grow cluster

Cluster / Federal Executive Branch (Ministry of Economy CSR Import tariffs
on both intermediate and final products in the auto industry hinder
competition in the local market.
Harmonize and gradually decrease tariffs for both intermediate products
and assembled cars - National Trade Representative (Ministry of the
Economy) FC / CSR Insufficient investment in R&D for international
standards. R&D is done by multinationals and at individual level, not
covering the Cluster in general.

Create tax incentives programs for R&D activities and technology transfer.
Establish specialized R&D centers in collaboration with the private sector
and universities. - Federal Executive Branch - Cluster (IFC’s) FC Relative to
national standards, high availability of skilled human capital relevant to the
auto cluster; but quality needs to be increased to reach international levels
and higher-value production activities at scale • Emphasis on increasing
quality in math and science in primary and secondary education through
comprehensive school programs.

Increase scholarships and encourage collaboration with business sector in

high education by developing specific programs tailored to the Auto cluster
needs

Government-industry collaboration to develop programs that increase and

improve small and medium local suppliers. Build IFC targeted to increasing
competitiveness among indigenous auto parts suppliers. In collaboration
with National Auto parts Industry association: build capacity, upgrade
technology, encourage formalization in tier 2 National and State level
Ministries of the Economy Cluster (tier 1 and 2 manufacturers) Mexico
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Central Region Automotive Cluster Microeconomics of Competitiveness 33

brands) who instead source primarily from other foreign owned firms. Many
informal micro-suppliers distort competitive environment, and may create
disincentives for formal firm participation suppliers. DC Tenancies ownership
tax on vehicles remains at state level despite being removed at federal level.

Carefully analyze impact of tax elimination with possible action to follow. -

State governments CSR / DC While high at the local level, low
environmental standards with respect to global frontier • Gradually adopt
higher environmental standards to foster innovation and efficiency - Federal
Executive branch (Ministries of Environment and Economy)