Mexico can now claim bragging rights as Latin America’s automotive leader. For the first half of this year, Mexico surpassed powerhouse Brazil as the region’s number one vehicle producer, and it’s on target to build a record three million vehicles in 2014. CCTV’s Franc Contreras reports.

Mexico’s auto industry is now Latin America’s bright star in the competitive world of manufacturing. During the first six months of 2014, Mexican automakers outperformed Brazil, a continuation of a trend.

The country’s auto industry association projects that factories are on target to produce a record 3.1 million vehicles this year, topping last year’s 2.9 million.

What’s behind this boom? First, Geography. 83 percent of all vehicles made in Mexico are exported. Most go to the United States, which has the world’s biggest appetite for new vehicles.

Mexico also boasts free trade agreements with 40 countries. And it’s a top supplier of auto parts to U.S. companies.

Mexico also offers well-trained, low wage workers and produces more engineering school graduates than Germany.

The government has kept inflation and the exchange rate in check allowing Mexico to build six new auto plants in the past four years.

In a move to boost Mexican exports, Honda, Audi, BMW, Mazda, Mercedes-Benz and Nissan-Renault have each invested a billion dollars.

Global manufacturing observers say Mexico’s auto industry is entering a golden era with the promise of new investments and thousands of new jobs.