An oportunity for Mexico?
But what impact will the adjustment have outside the United States? According to the analysts, GM will have to recuperate its profits by producing in markets with lower labor costs, such as China, South Korea and Eastern Europe. Even so, analysts assure that good news could be on the way for Mexico. Jaime Carreno, an analyst with Standard & Poor's in Mexico City, says that "the Mexican work force (in the automobile sector) is equally qualified as that in the United States, and the costs continue to be much cheaper." What's more, he explained, the many years that GM has operated in Mexico, its well-structured local logistics and its geographic proximity to the U.S. continue to provide important competitive advantages. Another local sector that could see benefits from the news is the autoparts industry, which sells close to US$10 billion annually to GM.
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|Title Annotation:||Automotive sector; General Motors Corp.|
|Author:||de la Iglesia, Almudena|
|Article Type:||Brief Article|
|Date:||Dec 1, 2005|
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