Spillovers of Japanese Automotive Companies’ Activities in the State of Aguascalientes

Abstract

Nissan was the first Japanese company to arrive in Mexico, in 1959. Initially established as a distributor of the Datsun brand, it soon converted into a whole car manufacturer. However, it was not until 1982, with the establishment of its first manufacturing plant in Aguascalientes and a shared investment of more than 1.3 billion dollars that Nissan became a real icon of Japanese companies in Mexico. The assignment, in 2013, of 2 billion U.S. dollars for the establishment of its second production plant—the largest foreign investment in the history of the country—was the second major step undertaken by Nissan. This impressive expansion was, in part, the result of the close interaction between Nissan and its first-level—Tier 1—suppliers, many of which were established in Mexico almost simultaneously with the company. However, a no less important factor that contributed to these achievements was the effort made by the State Government of Aguascalientes in attracting and providing a strong support to Nissan for its operations in the state. As a host of this long-term flow of investment from Nissan, the State of Aguascalientes has not only experienced an important economic growth, but also has benefited from the development of local suppliers and their integration into the Global Value Chains (GVC) and the demonstration effect exerted on local companies.