OREANDA-NEWS. September 21, 2012. Hitachi Automotive Systems Americas, Inc. - the regional headquarters for the Americas within Hitachi Automotive Systems' global operations - today announced the start of construction in Queretaro, Central Mexico, of Hitachi Automotive Systems Queretaro, S.A. de C.V., a new company for manufacturing automotive equipment systems in Mexico.

An increasing number of foreign car manufacturers are building manufacturing plants in Mexico to serve Latin America and other regions of the Americas. In turn, automotive equipment systems manufacturers are also upgrading their operations to ensure that they have the necessary production capacity in Mexico and are accelerating localization so they can respond promptly to local needs.

Manufacturers of automotive equipment systems are becoming increasingly active in Mexico, drawn by the preferential trading environment created by trade agreements such as NAFTA (North American Free Trade Association) and Mercosur (Southern Common Market, consisting of Brazil, Argentina, Uruguay and so on) which allows automotive parts and components to be exported free of duties and tariffs.

Up until now, Hitachi Automotive Systems, Ltd. has been using its other Group companies in Mexico, UNISIA MEXICANA, S.A. DE C.V. and Electronica Clarion S.A. de C.V., to expand and optimize its Mexico-based production of mechanical and electronic systems to each specialty and to strengthen its supply capabilities to North, Central and South America.

To respond to increased vehicle production in Mexico and to take advantage of the positive trade environment created to further strengthen supply capabilities for car manufacturers throughout the Americas, Hitachi Automotive Systems, Ltd. has secured a 20-hectare site for the new company in Queretaro. Production is scheduled to begin there in April 2014, starting with suspension products and later expanding to include other products. The planned investment in the company will amount to USD 100 million (approximately 7.8 billion yen)* over the four-year period 2012-2015.

Going forward, Hitachi Automotive Systems, Ltd. will focus on driving the further growth of the automotive equipment systems business in the Americas and other global markets by providing automotive equipment systems that meet the needs of regions around the world.