Auto Industry Coping with COVID-19

COVID-19 continues to disrupt OEM operations in the country, while workers and dealerships are drafting strategies to cope with the situation.

COVID-19 has disrupted production operations globally. In the country, 31.4 percent of manufacturing and maquila contracts have not been fulfilled. OEMs’ halt in operations continue and in the case of Ford, FCA and GM, the cease in operations has been extended for two weeks. In total, 10 out of 12 light-vehicle OEMs have suspended operations. Only JAC, manufactured by Giant Motors Latinoamérica, and Kia continue operations.

Different sectors had come up with proposals to cope with the situation the virus is creating. Unions in the automotive industry continue negotiations to stablish working conditions during this period. Meanwhile, AMDA’s Director General has urged the federal government to take action to help the dealership network during and after the crisis.

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• In China, automotive production is starting again in Wuhan. PSA Group’s joint venture with Dongfeng Motor Group announced production has been resumed.

COVID-19’s Effects on Manufacturing Operations

• Manufacturing and maquila sectors have not met 31.4 percent of contracts due to COVID-19.
• Approximately, 100,000 units will not be sold in Mexico due to COVID-19, according to El Financiero.
• Mazda Motor Corporation announced a global readjustment of production, including the suspension of operations at its Mexico plant for 10 days starting on March 25.

Measures to Cope With the Crisis

• AMDA urges the federal government to take measures to help dealerships cope with COVID-19 situation, the association said on a press release
• Unions in the manufacturing sector advance negotiations on labor conditions.
•  Ford, GM, and FCA announced an extension to their cease in operations. Originally, the companies would resume operations in early April but the date has been delayed up to the 14, except for Ford that will restart on April 6.

Here is the recap of OEMs in the country that have suspended operations in the country.