PepsiCo Opens New Beverage Company in Mexico

This July, it was announced that PepsiCo was initiating a new merger with the Mexican bottling company, Grupo Embotelladoras Unidas. Still pending approval from the Federal Competition Commission of Mexico, the two companies will complete discussions about the merger by late September 2011. After the formation of a strong partnership and the new beverage company in Mexico, GEUPEC will hold a majority interest in the joint venture...

New Bombardier Jet Manufactured in Mexico

There is news that the innovative, ultra-modern jet made by the aviation company Bombardier, which 5 years ago invested heavily to build it's first manufacturing plant in Mexico, is ready to assemble its new executive jet, expected to start flying in 2013.

The Canadian company, Bombardier, creator of the 8-passenger Learjet85, has invested US$250 million in Mexico since 2008. Click here to read more about this advancement in the Mexican aerospace industry.

Google Defends Investment

Larry Page, who is the chief executive of Google, defended his company's controversial investment priorities, after having reported higher-than-expected earning for the second quarter.

Wall Street has repeatedly reported it's worries that have spun out of control this year as Google has launched a number of ambitious expansion plans, including its recently launched Google+ social networking service. Click here to get the full story.

Analysis of U.S. Economy: Debt Ceiling

Via the Financial Times, here is a video that gives us a good idea of how economic analysts predict the conclusion of the debt ceiling talks before August 2nd and how it can potentially affect the rest of the world economy.

Foreign Investment in Mexico Stands Strong

As this article mentions, there is a lot of talk about the violence in Mexico, but what most people don't realize is that the border economy is still booming.

Last year Reynosa, a city along the border, added 4,000 jobs to the Mexican auto industry. These plants refuse to let the persistent violence affect their business; foreign investment in Mexico continues to roll in and plans for factory expansions are in motion.

Cannon Power Group to Invest $2.5bn in Mexican Wind Farms

Today the news was released that US company Cannon Power Group will make a $2.5bn investment into new wind farms in Mexico. Currently active in the Baja California area, according to reports, they will build another wind farm in the central state of Zacetecas.

It was reported that President Calderon has stated that the capital commitment from Cannon brings foreign investment during his term up to $100bn.

Click here to read the full story.

Mexico Becoming Go-To Country for Export Manufacturing Sector

“Mexico is becoming more attractive for manufacturing, particularly that aimed at the US market.”

Mexico has been overlooked, without cause, for the past, oh, let's say ten years or so.
China has been the main cause of that, exporting cheap goods along with the idea that it's the only country in the world where companies can find the best ratio of production capacity and cheap labor.

A research note from RBC Capital Markets released this Tuesday reclaims Mexico's right to a larger part of the market share of U.S. imports. Mexico is an obvious first choice for many importers, due to its geographic advantage over China. Aside from this, in recent months, wage inflation in China and wage stagnation in Mexico have combined to make labor prices in these countries virtually equal.

Click here to read the rest of the story on the switch to Mexico for export manufacturers.

The Rise of Mexico's Aerospace Industry

From The Financial Times:

Aerospace is the latest technical sector to spring up in Mexico. In the last 10 years, the total of aerospace companies operating in the country has risen to 238, with exports of roughly $3.5bn a year. Annual average growth has been 20 per cent a year since 2002.

“Simply put, Mexico is becoming more competitive,” says Bruno Ferrari, the country’s economy minister.

Carlos Bello, director-general of the Mexican Federation of Aerospace Industries (Femia), says he expects exports to reach $12 billion by 2020. He also stated that he expects a rise in Mexico's place from 14th place today to one of the top 10 most important aerospace manufacturers.

Mexican Retail Sales Accelerate in April

From Reuters:

The news has come out that Mexican retail sales jumped in April from March, largely due to stronger consumer demand. Reuters reported that 'growth in year-over-year retail sales accelerated to 4.9 percent MXRSLY=ECI in April'. These numbers symbolize Mexico's growing economy empowered by its large export industry that caters to the United States.

The economist Alberto Ramos of Goldman Sachs said private consumption growth should rise in the near future due to improvement in the labor market and stronger credit flows.

"Mexico's economy is expected to expand by more than 4.5 percent this year, largely because of industrial output as factories churn out goods for the U.S. market."