ared with the same period in 1993. The company sold $145 million worth of machines, engines and parts in the first half of 1994, most of which came from American production facilities. This was up from $82 million in 1993. The company credits NAFTA and the reduction of tariffs that affect Caterpillar products as well as an overall improvement in the Mexican economy for the growth. The benefit to Caterpillar translates into benefit for its employees: exports to Mexico in 1993 and 1994 supported 1300 jobs for Caterpillar workers in the United States, and more than 2700 jobs for employees at Caterpillar's suppliers in the United States.
Some American companies are pursuing joint ventures with Mexican companies in order to take full advantage of NAFTA. This strategy results in companies that have production facilities in both countries as well as distribution facilities in both. Such a strategy can help companies quickly penetrate both markets, a key advantage when companies are dealing with new technologies, or when they want to establish a market dominant position.
One such joint venture exists between U.S. Electricar and Group Industrial Casa (CASA). The companies announced in October 1994 that they would develop, manufacture and market several thousand "zero-emission" electric vehicles and buses over the next several years. The products will be distributed in the United States as well as Mexico and Central and South America.
Zero-emission vehicles are of particular interest to Californians (Electricar is based in Santa Rosa, California) because the state has mandated stringent air quality regulations by the end of the century. At the same time, Mexico City suffers from extremely poor air quality, and there are incentives available there for companies that can switch to delivery vehicles that help reduce the air pollution. One of the first projects that the joint venture will pursue is commercial vehicles designed...