Mexico: FreightCar America (FCA) is planning to increase production at its plant in Castaños. According to the company’s annual report, the target output is 6,000 freight cars.
In 2024, the plant produced 5,000 vehicles, with a capacity utilisation of 87%. Of these, 4,362 freight cars were built and overhauled (+44.3% to 2023). Plans for 2025 envisage the supply of 4,500 to 4,900 cars with revenues of $530–595 mln. The company’s backlog of orders includes contracts for 2,800 freight cars worth $267 mln.
FCA’s strategy is based on a highly diversified portfolio, offering more than 50 models. In 2021, the company relocated the production from the US to Mexico to reduce costs through access to cheaper raw materials and labour. Other major US producers such as Greenbrier and Trinity Rail have recently done the same, while their main market is the US and Canada.
Meanwhile, trade relations between Mexico and the US are expected to deteriorate. Amid discontent with the flow of drugs and illegal migrants, as well as the trade deficit, US President Donald Trump has decided to impose 25% tariffs on all goods from Mexico. They are due to take effect on 2 April.
