AMDA, INA Forecast an Industry Recovery

The automotive industry is undergoing an historic moment as it transitions toward electromobility, said Alberto Bustamante, Director General, INA, to MBN. This transition, however, must be accelerated if Mexico wants to continue exporting vehicles to the EU, especially after the approval of the “Fit for 55” package that will ban sales of ICE vehicles.

Meanwhile, Mexico experienced a growth in vehicle sales but sales are still below 2019’s levels, reports the Mexican Association of Automotive Distributors (AMDA).

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Road Accidents Cause 1.3 million Deaths Per Year: UN

Over 1.3 million deaths are caused by road accidents. For this reason, during the UN General Assembly, representatives committed to collaborate to decrease fatalities and injuries. Mexico saw a total of 301,678 accidents in 2020 of which 81.3 percent involved material damages, 17.6 percent injured victims and 1.1 percent caused the death of at least one person, according to the National Institute of Statistics and Geography (INEGI). Read the full article here.

Mexico Will Not Be Able to Export ICE Vehicles to the EU Starting on 2035

EU’s Member States adopted a common position on the “Fit for 55” package that will ban sales of new vehicles powered by fossil fuels by 2035. In 2021, Mexico exported over 88,000 vehicles to the EU. If the country wants to continue exporting units to this market, it has to adapt its production lines and expand its EV offering. While sales of electric and hybrid vehicles are growing, EVs only represent 2 percent of the units manufactured in the country, said José Zozaya, President, Mexican Association of the Automotive Industry (AMIA). Learn more about the “Fit for 55” package here.

Car Sales Grow by 1.9 Percent in June: AMDA

AMDA reported that 90,368 vehicles were sold in Mexico during June 2022. This number exceeded AMDA’s expectation of 86,685 commercialized units. “The estimate showed a percentage difference of 4.1 percent with respect to the observed figure of 90,368 units. This level of sales is still below sales in the same month of 2019, being 15.4 percent lower,” said Guillermo Rosales, President, AMDA. Learn more about it here.

FESIIAAAN Prepares for Legitimization of Automotive Unions

Before May 1, 2023, workers have to legitimize their collective bargaining agreements under the new provisions created by the USMCA. The Rapid Labor Response Mechanism created by the treaty has put labor rights challenges in the spotlight. “The Facility Specific Rapid Response Labor Mechanism (FRRLM)1 is an unprecedented dispute resolution procedure in trade agreements. Its purpose is to reinforce compliance with the labor commitments assumed in the USMCA,” according to Mexico’s Ministry of Labor. Read the full story here.

EV Transition: A Historic Moment

The National Auto Part Industry (INA) association has forecasted an almost 7 percent increase in the production of auto parts in Mexico by the end of 2022. The entry into force of the USMCA and the US trade war with China has made this scenario possible. Meanwhile, new players are entering the auto parts industry and cybersecurity is gaining more relevance.

Mexico is seeing a historic moment as it transitions toward electromobility, said Alberto Bustamante, Director General, INA. “People do not realize the importance of the historic moment that we are living in. This era is as important as when the first ICE vehicle was launched or even when the internet was created. Future generations are going to live in a world where only EVs circulate on the road and they are going to be told stories about the times when ICE vehicles existed,” said Bustamante. Read the full interview here.

Hyundai, Michelin to Develop Tire Technology

Hyundai will collaborate with Michelin to develop ecological tires for its premium EVs. The upcoming tires aim to improve the driving experience by reducing vibration and sound. Michelin and Hyundai have been partners for the past five years and this R&D effort is a result of this successful relationship. “The partnership with Michelin will result in real innovations in tire technologies and will consolidate Hyundai’s Motor Group position as the leader in intelligent mobility,” said Bong-soo Kim, Vice President and Director of the Center of Chassis Development, Hyundai Motor Group. Read the full story here.