Mitsubishi Electric Establishes Automotive Equipment Manufacturing and Sales Company in Mexico
Aims to expand automotive equipment business in the Americas
TOKYO - Mitsubishi Electric Corporation (TOKYO: 6503) announced today that on March 6 it established a new Mexican subsidiary, Mitsubishi Electric Automotive de Mexico, S.A. de C.V., to manufacture and sell automotive equipment including alternators and starter motors beginning in October 2014. The new base will better position Mitsubishi Electric to expand its automotive equipment business in the Americas, with the new company aiming annual sales of 30 billion yen in 2017.
Automobile production has been expanding in Mexico due to recovering automobile sales in the U.S. and increasing sales in Latin America. The new manufacturing and sales company in Mexico will enable Mitsubishi Electric to establish a local supply system for automotive equipment, strengthen price competitiveness and realize an efficient business structure for the expansion of business throughout the Americas.
Mitsubishi Electric Automotive de Mexico will strengthen business coordination and production in conjunction with Mitsubishi Electricís existing U.S. manufacturing base, Mitsubishi Electric Automotive America, Inc. In addition, the new company will supply products for other markets around the globe by taking advantage of preferential tariff treatment under Mexicoís trade agreements.
Outline of Mitsubishi Electric Automotive de Mexico, S.A. de C.V.:
Location - State of Queretaro, Mexico
Site Approx.150,000 ㎡
Building - One wing with a total floor space of approx. 22,000 ㎡
Paid-in capital - Mex$500 million (JPY 3 billion)
Ownership - Mitsubishi Electric Corporation: 95%
Mitsubishi Electric Automotive America, Inc.: 5%
Registration - March 6, 2013
Operations launch - October 2014
Business - Manufacture and sales of automotive equipment including alternators and starter motors
Workforce - Approx. 600 employees by fiscal year ending March 2017
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