Highwind Traders S de RL de CV deal.

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Evaluation criteria.

- Auto industry statistics, 30%

- Specific industry benefits according to the FTA, 30%

- Memorandum addressing the CEO with your findings and forecast, 40%

MEMORANDUM

TO: Eduardo Solís, Executive President, Mexican Association of the Automotive Industry

FROM: Claudia Mercado Díaz, Export Assistant

DATE: November 14th, 2016

SUBJECT: Statistics and Forecast for the Automotive Industry between México and the European Union

Advantages and current Mexico´s position

The competitive advantages Mexico has to offer in terms of supply chains, skilled labor, geographical location and preferential access to international markets has established the country as one of the world’s leading vehicle producers and exporters. Furthermore, the maturity and dynamism of the industry has attracted fresh investment, which means it is likely to produce even more vehicles in the near future for sale not just on the domestic market, but for export to the United States and other regions of the world, like Europe and Latin America

The Forecast and Projections

In the 2014-2020 period, the European Commission plans to double resources to promote cooperation on R&D projects in the auto industry. These funds will be channeled mainly into the development of environmentally-friendly vehicles, safety and technological infrastructure

Current Europe position

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Conclusion

The Mexican auto industry of today is a more mature one that conducts research and development and even has its own brands. It will be especially interesting to see if these Mexican carmakers can strengthen their presence on the domestic and international markets and develop their technological potential to the full, positioning the industry as a leading actor in all links of the value chain.

Faced with a scenario of competitive growth, the Mexican auto industry has stepped up efforts to develop Tier 2 and Tier 3 suppliers in the terminal sector. Like comparable industries, specifically that of Eastern Europe, Mexico has opted for highly specialized manufacturing processes and components as a means of attracting projects with higher added value that require design, research and development activities.

But if the domestic industry is to continue to pass milestones, it needs a reliable supply of highly qualified talent to meet the stringent quality standards demanded by today’s increasingly complex, specialized manufacturing processes and components