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Nearshoring News Update

Latest on the Nearshoring trend in Mexico.

North America to make 25% of what it imports from Asia: Mexico
January 13, 2023  

MEXICO CITY (Reuters) — Mexico, the U.S. and Canada plan to produce in North America 25% of what they currently import from Asia under a new drive to promote the integration of the region’s economy, Mexican Foreign Minister Marcelo Ebrard said on Thursday.


Why Chinese Companies Are Investing Billions in Mexico
NY Times Article, February 3, 2023  

Alarmed by shipping chaos and geopolitical fractures, exporters from China are setting up factories in Mexico to preserve their sales to the United States.


Tesla’s Monterrey Plant Ushers In Mexico’s Electric Vehicle Age
Bloomberg Article, March 1, 2023

1. Shift to south of US border brings labor, trade advantages.
2. Biden’s IRA allows credits for EVs made in North America.


Tesla to build next plant in Mexico     
CNN Article, March 1, 2023

Reuters reported that Mexican officials said the plant could cost $1 billion. Most of the global automakers already have assembly plants in Mexico. According to Reuters, there are 20 auto assembly plants in the country. General Motors has three, Ford has two, including one that make its Mustang Mach-E, the EV SUV that is a competitor to Tesla. Stellantis — which builds cars under the Chrysler, Dodge, Ram and Jeep brands — has three.

In addition Toyota, Honda, Nissan, Volkswagen, Audi, Mazda, Mercedes, Kia and BMW all have plants in Mexico.



Master Cross-border Operations 

Safe Landing Options for Foreign Companies

For adding the operative capabilities of a foreign country, companies have taken advantage of different services that allowed them to test drive the region while maintaining ownership. Because it can support end-to-end operations, It eliminates the need of hiring multiple vendors and shelters foreign companies from local risks, while saving on upfront costs and recurring expenses.

Depending on the industry, this option is known as the Shelter Model, Subsidiary-as-a-Service, and Virtual Subsidiary. What Tech Companies should expect from this type of service? Which vendors are available by country?

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Incorporating a cost-containment strategy that adds operational scalability

Tech companies frequently experience the fluctuating influence of Silicon Valley relentless pursuit of growth at any cost. Usually tied to a bullish market outlook followed by a pessimistic swing that triggers an avalanche of cost-containment strategies. Common sense appears and disappears as well, when it shouldn’t, regardless of the economic climate.

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