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- MEXICO

MEXICO RATIFIES NEW FOREIGN MINISTER

• The Mexican Senate ratified Roberto Velasco as the new head of the Ministry of Foreign Affairs (SRE), following the resignation of Juan Ramón de la Fuente due to health reasons.

• Velasco, who previously served as undersecretary for North America, has been a key architect of Mexico’s relationship with the United States and Canada since 2020.

• His appointment comes at a critical juncture, as the three partners of the USMCA are engaged in a review process that will define the agreement’s continuity and scope.

• He is also a close ally of the Secretary of Economy, Marcelo Ebrard, reinforcing the importance of collaboration between the ministries for the USMCA review.

SOURCE: FORBES

US - MEXICO

ELECTORAL REFORM AND 40-HOUR WORKWEEK

SECONDARY LAWS ADVANCE IN CONGRESS

• Mexico’s Congress has moved forward on two priority legislative fronts. In the lower house, lawmakers approved in general terms the so-called “Plan B” electoral reform, a package of secondary law changes aimed at reducing the cost of the electoral system. Backed by the ruling bloc, the reform introduces austerity measures such as limits on local legislative spending, salary caps for electoral authorities, reductions in municipal council seats, and a gradual budget cut for the Senate. The proposal follows the failure of a prior constitutional reform.

• In parallel, the Senate approved secondary reforms to the Federal Labor Law to operationalize the transition to a 40-hour workweek. The legislation includes mandatory electronic time tracking, a gradual adjustment of overtime limits through 2030, and provisions that effectively guarantee two rest days per week by maintaining an eighthour daily cap. It also introduces flexibility for alternative hour distributions through mutual agreement between employers and workers.

SOURCE: MILENIO, EL ECONOMISTA

PRESIDENT SHEINBAUM TO ATTEND PROGRESSIVE SUMMIT IN SPAIN

• Mexican President Claudia Sheinbaum confirmed she will travel to Barcelona on April 18th, 2026, to participate in the Global Progressive Mobilisation (GPM) Summit.

• She will be joined by Brazilian President Luiz Inácio Lula da Silva, Colombian President Gustavo Petro, Uruguayan President Yamandú Orsi, and Spanish Prime Minister Pedro Sánchez, among other progressive leaders.

• The gathering is expected to address economic cooperation, democratic governance, migration, and strategies to counter rising conservative influences. This marks Sheinbaum’s first official visit to Europe since taking office.

SOURCE: THE LATIN TIMES

US

- MEXICO PRESIDENTIAL NEWS

SHEINBAUM APPOINTS NEW HEAD OF CUSTOMS AUTHORITY

• President Claudia Sheinbaum appointed Héctor Alonso Romero Gutiérrez as the new head of the National Agency of Customs (ANAM), replacing Rafael Marín Mollinedo. His reassignment suggests a broader internal reorganization within key administrative posts tied to trade and fiscal collection.

• Romero Gutiérrez brings a technical and policy-oriented background, with experience in digital transformation, telecommunications policy, and multilateral finance. His appointment comes at a critical moment, as improving customs operations is expected to be key for facilitating regional supply chains while ensuring compliance with stricter rules of origin and trade enforcement mechanisms, which is specially important in the context of the upcoming USMCA review.

SOURCE: MILENIO

FOREIGN INVESTMENT CONFIDENCE IMPROVES

• Mexico climbed six positions in the 2026 Foreign Direct Investment Confidence Index, moving from 25th to 19th place, signaling a recovery in investor sentiment after years of weak positioning. According to consulting firm Kearney, Mexico—alongside Singapore—was among the fastest risers in the ranking, with investors highlighting the country as a competitive production platform within North America. The economy also ranked as the third most attractive globally in terms of talent and workforce quality, reinforcing its role in regional supply chain integration.

• However, the rebound in confidence does not fully translate into realized investment. Analysts warn that structural weaknesses—including limited technological innovation, infrastructure gaps, and uneven economic performance—continue to weigh on long-term attractiveness. Mexico remains near the bottom of the index in these categories.

SOURCE: FORBES

LEGISLATIVE CHANGES AND INITIATIVES

LABOR

• OPINION WITH DRAFT DECREE AMENDING THE FEDERAL LABOR LAW ON THE REDUCTION OF THE WORKWEEK

Presented by: Joint Committees on Labor and Social Security; Legislative Studies, First

Objective: The reform reduces the maximum workweek to 40 hours, to be implemented gradually from 2026 to 2030. It regulates overtime, limiting it to 12 hours per week and requiring premium pay, and mandates electronic tracking of working hours. It also establishes fines for non-compliance and allows flexible distribution of working hours by agreement between employers and workers.

Status: Approved on April 8, 2026, and sent to the Chamber of Deputies

PUBLIC ADMINISTRATION

• OPINION WITH DRAFT DECREE AMENDING THE CONSTITUTION TO REDUCE PRIVILEGES

Presented by: Joint Committees on Constitutional Matters; Political and Electoral Reform

Objective: establishes rules for municipal governance, including council composition. It caps local legislative budgets at 0.70% of state expenditures and limits compensation for electoral authorities to constitutional thresholds, aiming to reduce public sector privileges and strengthen efficiency.

Status: Approved on April 8, 2026, and sent to Local Congresses

• FIRST READING OPINION ENACTING THE LAW FOR PROMOTING INVESTMENT IN STRATEGIC INFRASTRUCTURE FOR DEVELOPMENT WITH WELL-BEING

Presented by: Joint Committees on Legislative Studies, First; Finance and Public Credit

Objective: establishes a legal framework to regulate strategic infrastructure investments, regulates investment contracts and creates a permanent advisory council responsible for defining technical criteria, issuing and coordination guidelines.

Status: Approved on April 7, 2026, and sent to the Executive Branch

NEWS BY STATE BAJA CALIFORNIA

The Autonomous Confederation of Workers and Employees of Mexico (CATEM) strengthened its ties with the Japanese automotive industry through a strategic visit to Japan, where a Mexican delegation, including Patricia Sosa Castellanos of CATEM Baja California, toured facilities of Mazda in Hiroshima and Nissan in Tokyo. The initiative aimed to gain firsthand insight into advanced models of innovation, workforce training, and technological development used by leading global manufacturers. By exchanging knowledge with one of the world’s most competitive automotive sectors, CATEM seeks to identify best practices that can be adapted to Mexico, ultimately enhancing workforce development, improving labor conditions, and strengthening the competitiveness of Mexican talent in a key industry for the national economy.

SOURCE: INDUSTRIAL NEWS BC

NEWS BY STATE

SONORA

Sonora Move will bring together key leaders from the automotive industry in Hermosillo, positioning itself as an important meeting point for global companies, decision-makers, and experts in future mobility. Organized with the support of the Clúster Automotriz de Sonora, the forum aims to strengthen the state’s role as a hub for both traditional manufacturing and emerging trends such as electromobility. Taking place on April 15–16, the event will feature major companies like Ford, Toyota, and Kenworth, along with representatives from automotive clusters across Mexico. A highlight of the event is the presentation of “El Fantástico,” a fully electric autonomous vehicle developed by Tecnológico de Monterrey, designed as a mobile research lab capable of interpreting its environment and making real-time driving decisions. The program also includes workshops, expert panels, and networking sessions with over 50 supplier companies, creating opportunities to strengthen the automotive value chain and elevate Sonora’s global competitiveness.

SOURCE: EXPRESO

NEWS BY STATE

CHIHUAHUA

The state of Chihuahua is participating in the Aircraft Interiors Expo, the world’s leading event for aircraft cabin interiors, held annually in Hamburg. Represented by Invest in Chihuahua and accompanied by the Clúster Aeroespacial de Chihuahua, the delegation aims to strengthen strategic partnerships, attract new investment opportunities, and position the state as a key aerospace hub. The expo gathers over 400 exhibitors and more than 12,000 industry professionals, including airlines, OEMs, and suppliers, showcasing the latest innovations in cabin design, in-flight entertainment, and connectivity. Chihuahua’s participation highlights its status as Mexico’s top aerospace exporter, reinforcing its global competitiveness and leadership in the sector.

SOURCE: GOVERNMENT OF CHIHUAHUA

NEWS BY STATE

COAHUILA

Stellantis highlighted the strategic importance of its operations in Coahuila during Stellar Autofest 2026 in Mexico City, emphasizing the state’s role as a key hub for high-quality engine and component manufacturing within the North American automotive supply chain. Engines produced in Coahuila were showcased as a symbol of the company’s advanced industrial capabilities, technical expertise, and global competitiveness. Supported by strong coordination with local and state authorities, Stellantis’ presence in Coahuila continues to drive job creation, attract investment, and strengthen Mexico’s industrial base, reinforcing the state’s position as a critical pillar in the company’s regional and global manufacturing strategy.

SOURCE: MEXICO INDUSTRY

NEWS BY STATE

NUEVO

LEON

More than 140 industry leaders gathered at the 19th Assembly of the Automotive Cluster of Nuevo León (CLAUT) in Monterrey, reinforcing its role as a key platform for strategic collaboration in Mexico’s automotive sector. During the event, Ismael Gómez was appointed as the new president, while Carlos Ramos was recognized for his leadership and contributions during the 2024–2026 term. The assembly also celebrated the 10th anniversary of the Driven/CLAUT Innovation Center, highlighting its impact on innovation, talent development, and technological advancement, with achievements including over 150 R&D projects and training for more than 1,300 professionals. Key priorities outlined for the upcoming period include strengthening institutional influence, developing supply chains, and accelerating the adoption of new technologies. The event further showcased collaboration among leading companies such as Metalsa, Ternium, and Caterpillar, underscoring the cluster’s role in driving innovation and competitiveness while positioning Nuevo León as a leading automotive hub at both national and international levels.

SOURCE: CLUSTER INDUSTRIAL

NEWS BY STATE

GUANAJUATO

Mazda has reached a major milestone at its plant in Salamanca, surpassing 2 million vehicles produced, reinforcing its strong manufacturing presence in Guanajuato and its contribution to the country’s automotive industry. This achievement reflects years of investment, operational integration, and the development of highly skilled Mexican talent, which has been essential in maintaining global standards of quality and efficiency. The plant’s success also highlights the strategic collaboration between Mazda and the state, driving supplier attraction, job creation, and value chain integration across the Bajío region— one of Latin America’s leading automotive hubs. Supported by key executives such as Takeshi Ishibashi, Kiyotaka Shobuda, and Takuji Iwashita, this milestone underscores Mexico’s role as a strategic platform for global automotive manufacturing amid ongoing nearshoring and regional integration trends.

SOURCE: MEXICO INDUSTRY

NEWS BY STATE

MEXICO CITY

• Mexico City has consolidated its position as a leading urban logistics hub, with e-commerce acting as the primary driver of industrial real estate demand. In 2025, online sales grew 19.2% to reach MXN 941 billion, supported by 67 million users and accounting for nearly 90% of logistics space demand in the metropolitan area.

• This sustained growth has reshaped the city’s industrial landscape. Rental prices for logistics spaces have doubled in recent years, surpassing USD 10.8 per m², while older commercial and service properties are increasingly being converted into last-mile distribution centers. Proximity to consumers, operational efficiency, and technological integration have become critical factors for tenants.

• At the same time, space constraints and rising costs are pushing companies to adopt hybrid logistics models, combining smaller urban warehouses with large-scale distribution centers in peripheral corridors such as Cuautitlán–Tultitlán–Tepotzotlán and the area surrounding the Felipe Ángeles International Airport.

• With over 865,000 m² under construction and absorption reaching 1 million m² in 2025, Mexico City’s logistics market reflects a structural shift toward faster, tech-enabled supply chains, positioning the region at the center of Mexico’s evolving consumption and distribution ecosystem.

SOURCE: EL FINANCIERO

NEWS BY STATE

STATE OF MEXICO

• General Motors implemented a circular economy initiative at its Toluca complex by incorporating recycled foundry sand into the construction of a new administrative building.

• This approach links manufacturing and construction, transforming byproducts from engine component production— such as those used in models like the GMC Terrain—into usable building materials. The project represents a scalable model for sustainable resource management within industrial operations.

• Developed in collaboration with a specialized sustainability partner, the process meets regulatory standards and opens the possibility of broader applications, including housing solutions. The initiative reinforces Toluca’s role as a site for operational innovation, while reflecting a broader shift in the automotive industry toward integrating environmental efficiency into production systems.

SOURCE: MEXICO INDUSTRY

INVESTMENT NEWS

Northern México

KIA

KIA, a global automotive manufacturer, announced an investment of US$600 million to expand its operations in Nuevo León, including new production lines for electric vehicles and sustainable infrastructure projects. The investment will support the development of clean energy initiatives such as a solar park and water treatment systems, while generating at least 300 direct jobs.

GAC

GAC Motor, a Chinese automotive manufacturer, confirmed that it will begin operations of its first assembly plant in Mexico during the second half of 2026. The facility will operate under a flexible assembly model capable of producing internal combustion, hybrid, plug-in hybrid, and electric vehicles, supporting the company’s long-term expansion strategy in the country.

HYUNDAI WIA

Hyundai WIA, an automotive components manufacturer within Hyundai Motor Group, announced an investment of US$35 million to expand its operations in Nuevo León and produce hybrid engines. The project is expected to generate over 250 jobs and reinforces the state’s position as a key hub for advanced automotive manufacturing.

NIFCO

Nifco, a Japanese manufacturer of engineered plastic components for the automotive industry, announced an investment of US$85 million to build a new plant in Apodaca, Nuevo León. The facility is expected to generate approximately 1,500 jobs and will strengthen the company’s production capacity while supporting major OEMs such as Tesla, Hyundai, Kia, Ford, and Honda.

HYUNDAI MOBIS ANNOUNCEMENT

Hyundai Mobis, an automotive technology and components manufacturer within Hyundai Motor Group, announced an investment of approximately US$59 million to expand its operations in Nuevo León. The project will focus on the development of autonomous driving technologies and semiconductors and is expected to generate around 250 specialized jobs.

INVESTMENT NEWS

Central México

TOPSUN

Grand Top Sun, an automotive components manufacturer focused on interior decorative parts, announced a US$55 million investment to open its first production plant outside China in León, Guanajuato. The project will create approximately 800 jobs and reinforces the region’s position as a key hub for automotive suppliers in North America.

KNUTH

KNUTH Machine Tools, a global supplier of machining and industrial equipment, inaugurated a new facility in Querétaro as part of its expansion strategy in Mexico. The site is designed to improve access to advanced manufacturing technologies and provide on-site technical support for companies in key industries such as automotive and aerospace.

SOURCE: MEXICO INDUSTRY

PRODENSA INSIGHTS

Automotive Investment in Mexico 2025

Automotive investment in Mexico continues to accelerate as global OEMs and suppliers expand their footprint across North America. Driven by nearshoring, electrification, and regional integration, Mexico remains a key destination for long-term automotive growth.

This article explores where investment is flowing, which regions and segments are leading, and how evolving industry dynamics are shaping the future of automotive manufacturing in Mexico.

• Where automotive investment is growing

• How electrification is influencing decisions

• Why Mexico remains central to North America

Mexico’s Business Environment: What Companies Need to Know

Mexico’s business environment offers a unique combination of opportunity and complexity. From regulatory frameworks and labor dynamics to trade advantages and regional differences, understanding the landscape is key to making informed investment decisions.

This article provides a clear overview of the factors shaping the business environment in Mexico and what companies should evaluate when entering or expanding in the market.

• Key elements shaping the business landscape

• How regulation and compliance impact operations

• What companies should consider before investing

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