Automotive Sector – North AmericaBy: Paul Young, CPA, CGADate: February 4, 2017

Agenda

• Automotive Production

• Mexico Automotive Production

• Mexican and USA Automotive Trade Deficit

• USA Electrical Car Sales – January 2017

Automotive Sales / Production

Source: Scotia Bank and Ward Automotive

Mexico Automotive Production

• Source - http://www.icis.com/resources/news/2017/01/10/10068983/vehicle-production-in-mexico-rises-8-8-in-dec/

BUENOS AIRES, Argentina (ICIS)--Mexican domestic automobile production in December reached 242,495 vehicle units, an increase of 8.8% over last year, the Mexican Automakers Association (AMIA) and Mexican Auto Distributors Association (AMDA) said on Tuesday.

Exports in December were also higher, up by 4.8% year on year at 216,645 units, the associations said.

Accumulated production for 2016 was at 3,465,615 units, up by 2% from last year’s cumulative production of 3,399,076 units, AMIA said.Sales to the public were sharply higher, jumping 19.9% in December to 192,567 units, AMIA said.

Mexican and USA Automotive

• Source - http://money.cnn.com/2017/01/09/news/economy/us-mexico-trump-cars-imports-trade-deficit/

If you take away those shipments, President-elect Donald Trump's dream would come true: The U.S. wouldn't have a trade deficit with Mexico.

The U.S. imported $78 billion of cars and auto parts in 2015 from Mexico. America's overall trade deficit with the country that year was $58 billion.

USA Electrical Car Sales

Source - https://cleantechnica.com/2017/02/04/us-electric-car-sales-59-january-2017/

US electric car sales continue to climb to new heights in 2017. Growing 59% year over year (YoY), approximately 12,000 electric cars were sold across the country in January, accounting for approximately 1% of US auto sales.

The top five models accounted for approximately 40% of total US electric car sales, as most models are still compliance cars that are not designed or marketed to really pull in buyers — and aren’t even available in most states.

Essentially, Tesla and GM are pulling the market forward. The Toyota Prius Prime, though, is a top-of-the-line Prius that is fairly widely available, is building off of the popular Prius name and reputation, and is genuinely cost-competitive with (a better deal than) a conventional Prius — especially once you take the US federal tax credit into account