PAACE sees continued Mexican Growth in '99.

Representatives of the 15 associations sponsoring the Pan American Automotive Components/Accessories Exposition (PAACE) predicted that Mexico's automotive sector will experience further growth in 1999, following another year of industry and general economic growth (+4.6% GDP growth) in 1998.

The associations representatives, at a press conference that preceeded the expo, noted that 1998 sales of new cars and trucks are predicted to reach 620,000 units, compared to 500,000 in 1997, an impressive 24% gain. Mexico's automotive aftermarket is recovering steadily as well. Further, Mexico's trade with the United States continues to grow.

"Mexico's automotive aftermarket continues to recover from the downturn of 1995," William Glasgow, Sr., who produces the show for the associations, said.

Participating in the press conference were William Gager, president of the Automotive Parts Rebuilders Association (APRA); Robert Miller, president of the Motor & Equipment Manufacturers Association (MEMA); and Richard Wells and Samuel Jackson, vice presidents of the Speciality Equipment Market Association (SEMA).

Gager said, "Mexico is an important, expanding market and source of products for the remanufacturing segment, including major production rebuilders and smaller, yet competitive local rebuilders."

MEMA president Miller said he shares the optimism about Mexico's future. "In 1996, Mexico's recovery was almost entirely oriented toward external markets, especially the U.S. Last year, we witnessed a shift in which domestic market growth resumed and assumed greater importance in the economy recovery. This year we see the same phenomenon occurring, although exports from Mexico still play a significant role. Mexico also is importing more, indicating that the anticipated benefits of the NAFTA are becoming a little more balanced. Foreign investment in Mexico, particularly in comparison with foreign investment in the automotive sector worldwide, remains fairly strong."