COSTEP pushes binational auto cluster to unite South Texas, northern Mexico industry

The Council for South Texas Economic Progress (COSTEP) is moving to unite more than 140 automotive companies operating across South Texas and northern Mexico into a formal cluster, an initiative aimed at giving the region a unified industrial identity and strengthening its competitiveness for global investment.

Adam González, chief executive officer of COSTEP, said the cluster is designed to showcase the region’s shared manufacturing history while building new opportunities.

“What we produce in this region must be presented in an integrated way, under a single industrial identity,” González said. “It’s not only about attracting new companies, but also about using our manufacturing legacy to expand markets and show the world what we can do.”

The strategy includes a regional marketing plan, participation in international trade shows, coordination with other auto clusters, and joint promotion missions. González said the aim is to position South Texas and northern Mexico as a unified manufacturing corridor capable of competing for global automotive investment.

Automotive clusters have proven successful elsewhere in Mexico. In San Luis Potosí, where companies like BMW and other major automakers have set up operations, the cluster model has helped transform the city into a magnet for foreign direct investment. Representatives from McAllen and Mission, including their economic development corporations, traveled there earlier this year to build partnerships and learn from that cluster’s success.

Although the auto sector has been part of the South Texas–northern Mexico economy for more than six decades, the lack of a formal cluster has limited the ability to align processes, talent, and promotion under a common brand. COSTEP’s proposal seeks to change that by linking automakers, educational institutions, and economic development groups on both sides of the border.