The duties levied on the companies had also been relaxed between these countries. This program was called as ‘The Border Industrialization Program’. With the implementation of NAFTA called as North American Free Trade Agreement, Mexico manufacturing has tripled.

Earlier, Mexico attracted manufacturers who perform only simple assembling. But, later with the development in this industry many big shots with complex products started flowing in to Mexico. China attracted many inexpensive commodity manufacturing in world level. At this time, US were looking for a similar place like china which could produce low cost products. Mexico manufacturing proved as the exact solution for a situation like this. Many foreign firms started setting up their operations and manufacturing in Mexico.

Methods of implementation :
Mexico manufacturing companies used five common methods:

• Contract or sub-contract manufacturing – This method is a form of outsourcing where Mexico manufacturers manufacture products for another company. This method will be used for companies who like to drive down the production cost involved in setting up infrastructure.
• Joint venture – Two or more firms invest for a single manufacturing.
• Full-owned – As its name suggests, the whole capital and profit belongs to a single company.
• Shelter – In this method, a firm can operate manufacturing and assembly in Mexico without even having knowledge of the subsidiary.
• Outsourcing – This is almost same as contract or sub-contract, except that this method outsources people rather than products.

Advantages :
The price of the land marked as one of unique Mexico manufacturing companies’ advantage for its development. Unlike other developing countries, the land cost remain cheap in Mexico which attracted many manufacturing in Mexico. Many firms which require large engineering content preferred Mexico than to other countries. Its proximity to US also helped the manufacturing companies for coordinating activities. Products got manufactured soon as the raw materials were readily available nearby and the products got delivered in time because the markets were nearby.

As a result of the deal, the shares of the ownership will be distributed as follows: 40 per cent of the shares will go to Porsche and the family Pitch that owns it, 20 per cent will go to the owners of the land of Lower Saxony, a major holder of shares of Volkswagen, 15 per cent of the shares will become the property of Qatar, that wishes to make a partial investment in the deal, and 5 per cent will go to an unnamed investment fund. And nothing is reported about what will happen to the remaining 20 per cent.

Management of Porsche has to decide whether it agrees to such an option or not until the end of July of this year. In case of a negative decision from the part of Porsche, the management of Volkswagen will require payment of the loan of 700 million euros provided by VW to Porsche in order to stabilize its financial situation.

It should be recalled, that Porsche, which is a relatively small producer of sports cars, has pursued an ambitious goal of absorption of the largest auto concern in Europe over the past years.

Last autumn, Porsche announced that it had acquired options to buy 75 per cent stakes of Volkswagen, but it still owns only 51 per cent of securities of the group. In pursuit of its aim Porsche gained a debt of 9 billion euros, and was forced to abandon the idea of full control of VW.

Instead, the companies have agreed to merge, the exact formula of which has not yet been able to be developed.

Dutch bank ING has announced that he ceases to sponsor the team Renault in Formula One. The Bank has supported the Renault and Fernando Alonso in the past few years, but now it comes out of sponsorship for the purpose of saving up. The decision will come into force next season after the current contract ends this year.

New Year continued the trend of the last year. The largest-ever registration performance decline in the production of cars in Spain was recorded in January this year. The disappearance of the demand led to a 53% reduction in relation to the level of last year, and conveyors let out only 123′762 new cars.

The market of commercial vehicles is also in very bad situation. The number of trucks registered in January in Spain was the lowest in history, and compared to last year’s rate was less of about 72%. The organization of employees SEOE asked for donations from the Prime Minister in the amount of € 3′000-12′000 to stimulate sales of industrial vehicles.

Many truck drivers have no choice but to declare themselves bankrupt. During these six months more than 6′000 transportation companies have closed down and many have lost all, faced with a large unpaid traffic and closed doors of private lending institutions. About 200′000 trucks are parked – which make 40% of total truck number in Spain.