Mexico’s Auto Boom Could Be Hurt by U.S.

Auto sales and production are still booming in Mexico, November figures showed. But executives in the rapidly expanding industry say a U.S. economic slowdown could begin to hurt production next year, because most units are exported across the border to U.S. showrooms. Total new car and truck production in November rose to 165,119 vehicles, up 32% from November 1999, the highest total for that month since the 1994 peso devaluation and ensuing economic crisis. Of those units, 114,309 were exported, up 30% from a year ago. Domestic sales continued to gather strength, rising 30% to 83,003 vehicles. Officials said domestic sales would have been stronger were it not for the illegal importation of used cars from the United States, a growing trend.