This chapter provides a brief history of the Mexican automobile industry. It opens with a discussion of the factors that led US and European automobile firms to establish operations in the Mexican market early in the twentieth century. The discussion then turns to the relationship between industrial policy and the structure of the sector. Finally, the concluding section discusses the implications of NAFTA and compares the pattern of regional integration under NAFTA with patterns of integration in the European Union (EU) and in South America's Mercado Comdún del Sur (Southern Common Market, Mercosur). I argue that NAFTA has strengthened regional production and trade among Mexican, Canadian, and US automotive producers. In comparative terms, however, integration of trade and production of motor vehicles is taking place in several other regions too. Given the trend toward regional trade blocs, one may legitimately question whether automobile production and trade is truly experiencing globalization.