According to fall 2004 data from Mexico's National Institute of Geographic Statistics and Information, the maquila sector is still looking up, even if only six of the nation's 17 main cities show more facilities than in 2003. Leading the way in number of plants among the 17 major states is Baja California, with 875, employing more than 231,000 people, thanks in large part to Tijuana. But the employment lead is held by Chihuahua, employing more than 275,000. That state's major city of Juarez also had the highest spike in facilities from 2003 to 2004, going from 271 to 285.
      Chrysler Group CEO and President Dieter Zetsche told a Canadian audience in fall 2004 that Mexican operations are to be touted for more than their labor costs. He noted the low absenteeism and rising quality and skill levels at DaimlerChrysler's six Mexican plants, which employ 7,000 and export most of their vehicles. Not long thereafter, DaimlerChrysler announced it would invest US$210 million to upgrade its plant in Saltillo, Coahuila.
      But even more than the pronounced improvement in the country's automotive sector quality and productivity, Mexico is making some global noise in electronics. Some of that investment is straightforward, like Vitelcom's $12-million handset plant in Quintana Roo, scheduled to be completed in February 2005. Vitelcom opened another plant there in 2004 that already employs 450 people, and also operates plants in Monterrey and Tlaxcala, as well as Sao Paulo, Brazil, all to serve the Latin and South American marketplace.
      Finland-based Nokia supplier Perlos is investing $17.1 million in a 161,464-sq.-ft. (15,000-sq.-m.) manufacturing facility in Reynosa, hard on the U.S. border with McAllen, Texas. In fact, the company already operates a Texas plant, in Fort Worth, as well as another in Manaus, Brazil. Reynosa is also seeing more than $30 million come its way in the form of a 100-worker automotive aluminum tubing plant from Norsk Hydro, which also operates Mexican plants in Coahuila and Sonora.
      Samsung announced in November 2004 that it would expand plants in Tijuana and Queretaro with a $200-million investment, in order to increase production of televisions, DVD players, refrigerators, telephone and air conditioners. Philips Consumer Electronics is planning to move some picture-tube and TV production from Bruges, Belgium to Juarez, Chihuahua. And Kentucky-based printer company Lexmark is building a new plant in Juarez too, on a 100-acre (40-hectare) site that will employ several hundred.
      Some of the new Mexican electronics investment in these sectors is more complex. Even before China's Ministry of Commerce and Ministry of Foreign Affairs issued its "Guide Catalogue of Countries and Industries for Overseas Investment" in September 2004, companies were already on the prowl.
      To avoid anti-dumping fees of up to 78.5 percent imposed by the United States, Chinese television manufacturer TCL International Ltd. is setting up shop in Thailand and in Mexico, whence China had allegedly been stealing jobs not so long ago. According to Mexican newspaper El Economista, the firm will now be able to send some 5 million TVs annually to U.S. markets. In late 2003, TCL and Thomson SA, the French company that owns RCA, announced a joint venture to produce 18 million TV sets and up to 4 million DVD players a year. Annual revenues are forecast to exceed $3.49 billion. And Thomson already had a well-established Mexican manufacturing base.
      "The Chinese will start taking a look to see if they can set up supplier chains, via cooperative arrangements through existing companies," observes Riley, noting that the Taiwanese have been successful with that strategy. "China right now is the No. 2 trade partner with Mexico behind the U.S."
      Sergio Tagliapietra, secretary of economic development for Baja California, announced in May 2004 that Sony, JVC, Hitachi, SMK and Sharp would invest $50 million in expanding their Baja California plants by the end of the year.
      Such investments will only be spurred further by the September 2004 signing of a free trade agreement between Mexico and Japan. After seeing a mere $338 million in investment from Japan in the past decade, Mexico is aiming to attract some $12.7 billion from the country in the next decade.