Mexico's top 50 foreign companies: Once more, business Mexico brings you its ranking of Mexico's top 50 foreign companies, with a retrospective on the year 2000 and a look at things to come. (Cover).Much has happened since our last issue of "Mexico's Top 50 Foreign Companies"-- the local business environment for foreign multinationals is probably better than ever, despite the sudden slump Slump A temporary fall in performance, often describing consistently falling security prices for several weeks or months. in U.S. economic growth. Today, the nation boasts unprecedented macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. stability, full--fledged political democracy and free-trade agreements with more than two dozen countries. Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. has consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: its position in the global marketplace and most significantly, its importance to North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market growth. If anything, the sheer amount of foreign investment the nation has attracted in recent years, and will surely continue to attract, attests to the enormous confidence that investors have in Mexico's future. A February February: see month. 2001 A.T. Kearney Kearney, city (1990 pop. 24,396), seat of Buffalo co., S central Nebr., on the Platte River; inc. 1873. It is a commercial, industrial, and transportation center in an agricultural area. study on the investment plans of the world's top 100 companies ranked Mexico as the world's fifth-most attractive investment destination, a two-place improvement over the same year-ago study. Three main reasons were reported: the stability of the peso, further privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned and continued political reform. But this is not to say there aren't aren't Contraction of are not. See Usage Note at ain't. aren't are not aren't be any problems. On top of the uncertainties being generated externally, a long list of local issues continue to plague plague, any contagious, malignant, epidemic disease, in particular the bubonic plague and the black plague (or Black Death), both forms of the same infection. the local and foreign business agenda. Once these issues are resolved, Mexico will be better able to reap and spread out the benefits of market aperture An orifice. It often refers to an opening in which light is allowed to pass in optical systems such as cameras and lasers. See f-stop and numerical aperture. and global trade. LOOKING BACK 2000 was yet another stellar year for most local multinationals, as they continued to ride a decade-long gush of uninterrupted economic growth in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Foreign manufacturers are largely responsible for driving Mexico's export revenues to record levels of US$166 billion last year, a 22% rise over 1999. The export sector now accounts for just under one-third of total gross domestic product (GDP GDP (guanosine diphosphate): see guanine. ), and it won't won't Contraction of will not. won't will not won't will be long, some analysts say, before it becomes the sole driving force behind local economic growth. Foreign direct investment (FDI FDI See: Foreign direct investment ) reached almost US$10.5 billion in 2000, with roughly US$9 billion of that sum coming from the United States, leaving second-place to Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. at US$1.5 billion. The majority of FDI, some US$6.5 billion, went into manufacturing industries manufacturing industries npl → industrias fpl manufactureras manufacturing industries npl → industries fpl de transformation . But it wasn't was·n't Contraction of was not. wasn't was not wasn't be just a record year for business--the advent of true political democracy and the first crisis-free political transition in almost 30 years made it historic as well. The distinctly pro-business administration of President Vicente Fox bodes well for the future of business in Mexico, and has undeniably increased the nation's investment appeal. Moreover, the president has publicly declared his intention to double FDI into Mexico to some US$20 billion each year, which is to say, almost double the average US$12 billion dollars it has received since 1994. As a result of the nation's drive to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. its export markets away from the United States--which accounts for almost 90% of Mexico's outbound out·bound adj. Outward bound; headed away: outbound trains. Adj. 1. outbound - that is going out or leaving; "the departing train"; "an outward journey"; "outward-bound ships" sales--last year also brought about an historic free-trade agreement with the 15-member European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community . The deal promises to attract more European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. multinationals to Mexico, many of them seeking to springboard their products into the United States under the terms of Nafta. Multinationals wishing to strategically use both agreements to access North American or European markets will need to move substantial parts of their production into Mexico. THE ISSUES Unsurprisingly, the main obstacles that foreign businesses face are the same concerns shared by local private players. The nation continues to require enormous structural changes in several key areas: * Fiscal Reform This is the key to it all. No single issue remains as important as the need to reform the nation's labyrinthine lab·y·rin·thine adj. Of, relating to, resembling, or constituting a labyrinth. labyrinthine pertaining to or emanating from a labyrinth. tax system. If it remains unresolved Not completed; not finished; not linked together. See resolve. , the present administration is unlikely to reach its targeted 7% annual growth rate, nor will it have the financial means to address many of the nation's pressing social needs or modernize mod·ern·ize v. mo·dern·ized, mo·dern·iz·ing, mo·dern·iz·es v.tr. To make modern in appearance, style, or character; update. v.intr. To accept or adopt modern ways, ideas, or style. key areas of the public sector. Healthier public finances enable greater macroeconomic stability, while less demand for credit from the government would help lower interest rates, encouraging economic growth and making credits accessible to those sectors that most need them (see "15 minutes with ... Francisco Francisco may refer to:
While many aspects of the government's fiscal reform package, such as a 15% tax on foods and medicines, have sparked enormous controversy, there are hopes that negotiations with Congress may result in a deal, perhaps by early next year, that improves matters. * Labor Laws labor law, legislation dealing with human beings in their capacity as workers or wage earners. The Industrial Revolution, by introducing the machine and factory production, greatly expanded the class of workers dependent on wages as their source of income. Local private sectors have long demanded a revision of Mexico's current labor laws, which not only discourage productivity, but also raise the costs of hiring and firing personnel, thus lowering the nation's competitiveness. The government is expected to present its long-awaited proposal for labor-law reform late this year or in early 2002 (see "Labor face-off," pg. 28). Another problem is the shortage of skilled labor along the northern border states Border States The slave states of Delaware, Maryland, Virginia, Kentucky, and Missouri that were adjacent to the free states of the North during the Civil War. . * Market Deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. There are local monopolies A Local monopoly is a locally efficient monopoly or government monopoly. See also Legal monopoly and restrictions to foreign participation in various areas, particularly the energy sector. Although no privatizations This list of privatizations provides links to notable and/or major privatizations. See also: Privatization. Argentina
 rŏk`rəsē), the administrative structure of any large organization, public or private. is also required, with easier licensing and
customs procedures. Meanwhile, Mexico has only just begun to clamp clamp (klamp) a surgical device for compressing a part or structure.rubber dam clamp a metallic device used to retain the dam on a tooth. clamp n. down on local monopolies. * Crime and Judicial Matters Significant security-related costs incurred by companies make them less competitive. Meanwhile, judicial uncertainty and inefficiency increases instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability and costs, while giving rise to copyright concerns. * LOOKING AHEAD Contrary to the market euphoria An interpreted programming language developed in 1993 by Robert Craig at Rapid Deployment Software that is noted for its execution speed, flexibility and simplicity. It can simulate any programming method including object-oriented constructs. of recent years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time economic outlook for the second half of 2001 remains uncertain. However, more recent economic data from the United States show a possible upturn in growth to-ward the end of the year, suggesting that Mexico's own growth could gain pace soon after. To begin with, U.S. economic growth in the first quarter topped the 2% mark, managing to beat analysts' expectations. Second, the U.S. Congress approved a modified version of U.S. President Bush's enormous tax cut. Finally, a small but unexpected fall in U.S. unemployment during May, to 4.4% down from 4.5% in April, indicates that the worst could be over. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum export growth has suffered, falling to 4.6% in the first quarter this year, compared to a robust 22% in 2000. Manufactured exports, the main activity of most of Mexico's top foreign companies and accounting for almost 90% of Mexico's export revenue, suffered a similar fate. So, these are uncharted waters Uncharted Waters (Japanese: 大航海時代, Daikoukai Jidai, literally Great Navigation Era) is a popular Japanese video game series produced by Koei as part of its rekoeition games. for Nafta, and for many of the foreign and local companies that have benefited from it. As the principal factor behind Mexico's booming 1995-2001 export-sector growth, Nafta coincided with, and indeed helped to promote, one of the most spectacular periods of North American-market growth in living memory. Now, with slower growth, a handful of these same companies are streamlining personnel and costs, or else closing shop all together. An estimated 400,000 jobs were believed to have been lost in the first quarter. However, FDI levels for the first quarter of 2001 reached a new all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high--almost US$3.6 billion--about 60% of which went into manufacturing. Although this demonstrates continued confidence, the subsequent strength of the peso is now dealing a tough blow to the exporting sector. As Mexico wanders further down the global trade course, it is increasingly important that Mexico improve those areas which will allow it to become more competitive and efficient. Matthew Matthew one of the twelve disciples. [N.T.: Matthew] See : Evangelism Gower Gower (gou`ər), Welsh Gŵyr, peninsula, c.15 mi (24 km) long and 5 mi (8 km) wide, Swansea, S Wales, between Swansea and Carmarthen bays. is BUSINESS MEXICO'S associate editor.
Mexico's TOP 50 Foreign Companies
Ranking Company Mexico 2000 Mexico Employees
sales (*) in 2000
1 General Motors 10,205 14,968
2 DaimlerChrysler de Mexico 9,084 11,500
3 Volkswagen 8,018 16,457
4 Ford 6,253 9,145
5 IBM de Mexico 3,884 2,800
6 Hewlett-Packard de Mexico 3,200 1,283
7 Sabritas 3,114/e 20,000
8 Motorola de Mexico 3,037/e >3,3000
9 GE de Mexico 2,775 >35,000
10 Nestle Mexico 2,259 6,990
11 Nissan 2,228/e (**) 10,303
12 LG Electronics 2,203/e (***) 244
13 Philips 2,103 12,743
14 Coco Cola de Mexico 2,029/e 75,000
15 SCI Systems 1,836 10,500
16 Sony Mexico 1,621/e ~300
17 Procter & Gamble >1,500 5,000
18 NEC de Mexico 1,493/e >1,000
19 Siemens 1,488/e ~13,000
20 Grupo Celanese 1,451/e 1,880
21 Grupo Kodak 1,219/e ~4,100
22 Cigatam 1,112/e >2,000
23 Colgate Palmolive 1,110/e >2,000
24 DuPoint Mexico 1,075 4,324
25 Lucent Technologies 974/e >300
26 Unilever 689 4,427
27 Compaq 686 400
28 Industrias John Deere 647 2,979
29 Grupo BASF de Mexico 646/e >2,000
30 Lear Corporation Mexico 638/e >5,700
31 Teleindustria Ericsson 636/e 2,500
32 Nokia 628/e >250
33 Kenworth Mexicana 621/e (***) 7,675
34 Navistar 608/e >1,000
35 Bayer de Mexico 528 2,192
36 Xerox Mexicana 479 4,000
37 Glaxo-Smithkline 400 2,200
38 Kraft Foods 384/e >2,500
39 Nemak 378 3,600
40 Pilgrim's Pride 358/e 4,500
41 Grupo Smurfit de Mexico 342/e 2,800
42 Schnelder Electric Mexico 265 2,101
43 3M de Mexico 249 1,200
44 York International 245 1,200
45 EDS de Mexico 219 1,929
46 CIBA Especialldades Qulmicas 206 898
47 DHL 203 2,763
48 Caterpillar 200 2,445
49 Grupo Olivetti Mexicana 159 2,500
50 Dirona 148 1,253
(*)in millions of US$
(**)Nissan's 2000 unit sales were: 173,066
(***)LG Electronics' 2000 unit sales were: 284,000
(****)Kenworth's 2000 unit sales were: 7,675
/e:estimate
Mexico's TOP 50 Foreign Companies
Ranking Company Country
1 General Motors USA
2 Daimler Chrysler de USA
Mexico
3 Volkswagen Germany
4 Ford USA
5 IBM de Mexico USA
6 Hewlett-Packard de Mexico USA
7 Sabritas USA
8 Motorola de Mexico USA
9 GE de Mexico USA
10 Nestle Mexico Switzerland
11 Nissan Japan
12 LG Electronics USA
13 Philips Holland
14 Coca Coa de Mexico USA
15 SCI Systems USA
16 Sony Mexico Japan
17 Procter & Gamble USA
18 NEC de Mexico Japan
19 Siemens Germany
20 Grupo Celanese Germany
21 Grupo Kodak USA
22 Cigatam USA
23 Colgate-Palmolive USA
24 DuPont Mexico USA
25 Lucent Technologies USA
26 Unilever Great Britain/Holland
27 Compaq USA
28 Industrias John Deere USA
29 Grupo BASF de Mexico Germany
30 Lear Corporation Mexico USA
31 Teleindustria Ericsson Sweden
32 Nokia Finland
33 Kenworth Mexicana USA
34 Navistar USA
35 Bayer de Mexico Germany
36 Xerox Mexico USA
37 Glaxo-Smithkline Great Britain
38 Kraft Foods USA
39 Nemak USA
40 Pilgrim's Pride USA
41 Grupo Smurfit de Mexico Ireland
42 Schneider Electric Mexico USA
43 3M de Mexico USA
44 York International USA
45 EDS de Mexico USA
46 CIBA Especialdades Switzerland
Quimicas
47 DHL USA
48 Caterpillar USA
49 Grupo Olivetti Mexicana Italy
50 Dirona USA
Ranking Company Sector
1 General Motors Automotive
2 Daimler Chrysler de Automotive
Mexico
3 Volkswagen Automotive
4 Ford Automotive
5 IBM de Mexico Technology
6 Hewlett-Packard de Mexico Technology
7 Sabritas Food
8 Motorola de Mexico Electronics
9 GE de Mexico Consumer goods
10 Nestle Mexico Food
11 Nissan Automotive
12 LG Electronics Electronics
13 Philips Electronics
14 Coca Coa de Mexico Beverage
15 SCI Systems Electronics
16 Sony Mexico Electronics
17 Procter & Gamble Consumer goods
18 NEC de Mexico Electronics
19 Siemens Consumer goods
20 Grupo Celanese Petrochemicals
21 Grupo Kodak Technology
22 Cigatam Tobacco
23 Colgate-Palmolive Consumer goods
24 DuPont Mexico Chemicals
25 Lucent Technologies Telecommunications
26 Unilever Food, Consumer goods
27 Compaq Technology
28 Industrias John Deere Machinery
29 Grupo BASF de Mexico Chemicals
30 Lear Corporation Mexico Autoparts
31 Teleindustria Ericsson Telecommunications
32 Nokia Telecommunications
33 Kenworth Mexicana Automotive
34 Navistar Automotive
35 Bayer de Mexico Pharmaceuticals
36 Xerox Mexico Technology
37 Glaxo-Smithkline Pharmaceuticals
38 Kraft Foods Food
39 Nemak Autoparts
40 Pilgrim's Pride Food
41 Grupo Smurfit de Mexico Paper
42 Schneider Electric Mexico Consumer goods
43 3M de Mexico Consumer goods
44 York International Consumer goods
45 EDS de Mexico Technology
46 CIBA Especialdades Pharmaceuticals
Quimicas
47 DHL Cargo
48 Caterpillar Machinery
49 Grupo Olivetti Mexicana Technology
50 Dirona Autoparts
Ranking Company Head Office name
1 General Motors General Motors
2 Daimler Chrysler de Daimler Chrysler
Mexico
3 Volkswagen Volkswagen
4 Ford Ford Motor Company
5 IBM de Mexico International
Business Machines
6 Hewlett-Packard de Mexico Hewlett-Packard
7 Sabritas PepsiCo
8 Motorola de Mexico Motorola
9 GE de Mexico General Electric
10 Nestle Mexico Nestle
11 Nissan Nissan Motor
12 LG Electronics LG Electronics
13 Philips Philips
14 Coca Coa de Mexico Coca Coa Co
15 SCI Systems SCI Systems
16 Sony Mexico Sony Corporation
17 Procter & Gamble Procter & Gamble
18 NEC de Mexico NEC Corporation
19 Siemens Siemens AG
20 Grupo Celanese Hoescht Celanese
21 Grupo Kodak Eastman Kodak
22 Cigatam Philip Morris
23 Colgate-Palmolive Colgage-Palmolive
24 DuPont Mexico DuPont
25 Lucent Technologies Lucent Technologies
26 Unilever Unilever
27 Compaq Compaq Computer
28 Industrias John Deere Deere
29 Grupo BASF de Mexico Basf
30 Lear Corporation Mexico Lear
31 Teleindustria Ericsson LM Ericsson
32 Nokia Nokia
33 Kenworth Mexicana Kenworth
34 Navistar Navistar International
35 Bayer de Mexico Bayer AG
36 Xerox Mexico Xerox Company
37 Glaxo-Smithkline Glaxo-Smithkline
38 Kraft Foods Kraft General Foods
39 Nemak Nemak
40 Pilgrim's Pride Pilgrim's Pride
41 Grupo Smurfit de Mexico Jefferson Smurfit Group
42 Schneider Electric Mexico Schneider Electric
43 3M de Mexico Minnesota Mining
& Manufacturing
44 York International York International
45 EDS de Mexico Electronic Data Systems
46 CIBA Especialdades Novartls AG
Quimicas
47 DHL DHL International
48 Caterpillar Caterpillar
49 Grupo Olivetti Mexicana Olivetti
50 Dirona Dirona
RELATED ARTICLE: The List The list is divided into two parts. The first part, on page 36, provides--from left to right--company ranking, company name, total Mexico sales in millions of dollars (rounded to the nearest million) and total number of employees in Mexico. The second part, on page 38, provides the company ranking and name again, and then the country of origin, sector and head office name. Companies are ranked from 1 to 50 based on their total sales. Because some foreign companies maintain strict policies of confidentiality, BUSINESS MEXICO in some instances had to estimate total Mexico sales figures sales figures npl → cifras fpl de ventas (as indicated by the "e"). Our estimations are based on company performance in previous years and average growth of the company's sector or sectors. |
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