About Us
THE CAR, THE BATTERY AND THE ECONOMY

In 2018, Mexicans bought 1.4 million cars. Last year, manufacturing slowed and approximately 1.3 million cars were sold, nearly an 8% drop
in sales. In 2020, 1.2 million cars are expected
to be sold.

Economic Clouds – Are they appearing due to cars? Cars seem to last longer. Younger generations are not as attached to cars as the older generations. The Mexico automotive industry represents 23% of the manufacturing industry GDP and almost 5% of the total Mexico GDP.

There's also talk about electric cars and the future. In Mexico, people are beginning to shift preferences to electric cars. I've been reading about the lithium battery that goes into these cars. Ouch! Alert! 45% of the cost of the car is in the battery.

Production Costs – Electric cars cost more in terms of money and energy to manufacture. If a battery dies after 8-10 years, do you get a new battery or a new car?

Driving Range – If you can only go about 300-550 kilometers at the most, does this limit the daily commute?

Charging Stations – There are about 1,600 charging stations in Mexico compared to 10,000 gas stations. And it takes 30 minutes or more to charge your car.

Green Thoughts – The materials in the battery, lithium, cobalt and nickel, require foreign sourcing. Recycling these batteries costs more than extracting virgin lithium from the earth. Are most of these batteries going to the dump?

California - Texas

Energy to Produce – If the batteries are produced in
a factory powered by fossil fuel, that production can produce up to 74% more carbon dioxide than production of a conventional car.

On the Plus Side – Tesla, Volkswagen, Nissan and just about every car manufacturer in the world are working fast and furiously to address these issues. Elon Musk, CEO of Tesla, has been filing for patents for a new lithium-ion super battery that can last a million miles. The next few years should be interesting.

Auto manufacturing was one of the key topics
addressed in the USMCA, the new NAFTA deal.
The government is not allowing the legalization of thousands of
"chocolate" cars, but there
is still more they need to do
to
incentivize people
to buy
new cars.
In the meantime,

I'll continue driving
my
"regular" non-
electric car.

Liz Uihlein Portrait and Signature
Our People Make The Difference A FAMILY COMPANY WORKING FOR YOU SINCE 1980
Our People Make The Difference
06/04/2020 08:57:53 AM; USWEB5 -0-0/0.0-1