Mexico Gets Most N. America Capacity Investment

Last year automakers committed to spend nearly US$2.6 billion on building or expanding assembly plants in Mexico compared with $500 million in the U.S., according to the University of Windsor's Office of Automotive & Vehicle Research.

Capacity investment pledges for Canada totaled $175 million in 2012, the first such spending there in three years.

Carmakers unveiled plans last year to invest $15.6 billion to boost worldwide output capabilities, compared with $23.5 billion in 2011 and $16.6 billion in 2010.

Mexico ranked second only to China in 2012, which has topped the Canadian university's spending tally since 2002. In the past four years, companies have declared plans to invest more than $39 billion on auto capacity in the country.

Last year companies disclosed intentions to spend $9.3 billion on capacity in China, 60% of the global total. Big investments also are planned for Russia ($1.6 billion) and Brazil ($934 million).

Among the university report's other findings:

In 2012 companies announcing major capacity spending around the world included General Motors ($3.7 billion), Chrysler ($1.6 billion), Nissan ($1.4 billion) and Ford ($1.3 billion). Trailing them were Toyota ($564 million) and Honda ($39 million).

European automakers committed to $4 billion in worldwide capacity investment last year. Indian companies unveiled plans for $972 million of expansion, and South Korean carmakers pledged the same amount.

From 2012 to 2017, North American light-vehicle assembly will grow by slightly more than 600,000 units for the Detroit Three, 1.27 million units for Japanese carmakers, 190,000 units for European companies and 100,000 units for South Korean manufacturers.

U.S.-based automakers will account for just over 51% of North American production by 2017 compared with 54.5% last year and nearly 76% in 2000.