MEXICO CITY, June 21 - Recent investments announced by companies in the automotive industry such as Honda, Mazda and Audi have been joined by others in the heavy vehicle sector seeking to increase production in Mexico, as is the case of Daimler Trucks, the truck division of the German corporation that owns brands such as Frightliner and Mercedes Benz.

Before the end of this year, Daimler Trucks de México plans to announce the construction of a new heavy truck transmission production plant in Mexico
mexico.

The investment would be around 300 million dollars, revealed Gerhard Gross, president and general manager of Daimler Trucks for Mexico.

In an interview with Excélsior, the German-born executive stated that this new plant is being planned for Mexico after Brazil was ruled out due to the gloomy economic outlook for the South American giant, although he clarified that the United States and Canada are still in the pipeline
and Canada.

"There are clouds on the horizon for Brazil, but we have been predicting this for a long time; I don't even want to mention Argentina. I believe that in Latin America, Mexico and then Colombia will be in first place, in terms of strong economies in the region, although of course, there are still many things to be done," he commented.

El Bajío, a strong candidate

The location of the transmission plant has not yet been defined, but it would not be in Saltillo, where they have another truck assembly plant, nor in the northern part of the country, since they want to export to other parts of the world and not only to the United States, as is currently the case, so it would be necessary to be close to sea ports and inland ports.

"We also want to export, we need proximity to ports, trains... Saltillo is fine to assemble trucks and send them to the US, but if you want to reach other countries, the Bajío is a good option. It is very hot, many companies are there, it is a good option, but it is not the only one," commented the German executive.

Gross said that the plan for Mexico is to build here a large part of the trucks that are currently only assembled in its two plants in the country, the one in Saltillo, Coahuila, and the one in Santiago Tianguistengo, in the State of Mexico.

In fact, the plan to have an almost entirely Mexican truck began to materialize with the expansion of the Saltillo plant, where axles are now also being built, and once the transmission production plant is opened, the next step would be an engine plant.

The infrastructure to build axles required an investment of seven million dollars, and is operating as of this year, at a slow but steady pace, although it has not been officially inaugurated.

"What I would like to produce in Mexico in the following years, after axles, are of course transmissions and, at some point, engines, with which I would like to have a whole powertrain made in Mexico: axles, transmissions, engines, assembly base for the whole truck," said Gerhard Gross.

Insecurity does not scare them

Although he recognizes that the climate of insecurity and violence in the country is a factor that influences corporate decisions, he assures that it is to a very small extent, "less than you might imagine," he says, and he is confident that the Mexican government is making the right decisions to provide a long-term solution to this problem.

"If you marry a country, as is our case, you have to be in good times and bad," said the executive.

Daimler Trucks has made good use of its presence in Mexico. From January to May of this year, it reported a production of 29,172 units between the two plants, 55 percent of national production, and of which 26,250 were for export, which in turn represents 64 percent of national exports in this segment.

These numbers represent an increase of 25.18 percent over the 23,304 units produced in the same period of 2011.

Daimler Trucks is also the leader in the domestic market. According to figures from the National Association of Bus, Truck and Tractor-Truck Producers (ANPACT), from January to May of this year, two thousand 618 units were sold in the different segments where they participate, 36 percent above what was reported in the same period of 2011, while the industry as a whole reported an increase of 9.5 percent in the same period.

Fuel efficiency

One reason for their high sales, says Gerhard Gross, is the increase in the price of diesel, as their vehicles offer fuel savings that influence the purchase decision of their customers.

The increase in diesel is monthly as a result of the federal government's policy of eliminating subsidies, and has caused it to increase from 9.12 pesos per liter at the end of 2010 to 10.63 pesos per liter as of June 9.

This increase, the executive assures, translates into "millionaire" expenses for companies whose units travel more than 150 thousand kilometers per year and spend, on average, 50 thousand liters of diesel per year, each one.

"(The market) is accelerating a lot and every time when the liter of diesel goes up, it is the most important factor, as a transporter. There are others that also have an influence, but the most important is fuel consumption... so having a ten percent saving with vehicles like ours is substantial," he said.

The executive explains that the combination of the Mercedes Benz engines they use, together with the Freightliner bodywork, both Daimler companies, has given the key that in some cases allows to increase the fuel savings of the units to 15 percent, which attracts carriers.

Atzayaelh Torres

Source: http://excelsior.com.mx/index.php?m=nota&seccion=dinero&cat=13&id_nota=842657