Auto Sector Feels Heat as Trade War Intensifies

Trade war intensifies as Canada plans to align with the United States government, raising tariffs on Chinese products, while China considers a 25% tariff increase on internal combustion engine (ICE) cars. In Mexico, automotive industry leaders present a working roadmap of opportunities to presidential candidates. Additionally, Mexico City advances in electromobility within public transportation with the acquisition of a fleet from a Chinese manufacturer.

Put your seatbelt on. This is the Week in Automotive!

Tesla's Full Self-Driving Stumbles Amid Legal Hurdles

Tesla's Full Self-Driving (FSD) software is encountering challenges, both in terms of market acceptance and legal scrutiny. Despite aggressive marketing and price reductions, the adoption rate of Tesla's FSD remains low. Simultaneously, the company faces a class-action lawsuit alleging misleading claims about the capabilities of its self-driving technology.

Toyota Faces Production Halts in Tijuana Over Labor Gaps

Toyota has faced production interruptions at its Tijuana plant in Mexico, resulting in a total of 19 non-operational days in February and March. These disruptions were primarily due to labor shortages affecting local suppliers, as reported by Reuters.

Talent Shortage Hits 76% of Automotive Employers

As much as 76% of automotive employers are grappling with the challenge of finding qualified talent, as per a recent report by ManpowerGroup. 

RTP Mexico City Orders 50 Electric Buses from Chinese Supplier

Chinese bus manufacturer Yutong has secured a contract worth over MX$408 million (US$24.6 million) to supply 50 electric buses to the Network of Passenger Transport (RTP) in Mexico City. The electric bus market in Mexico is currently valued at US$280 million and is projected to grow to US$1 billion by 2029, according to Mordor Intelligence.

Canada Plans to Raise Tariffs on Chinese Electric Vehicles

Canada is currently evaluating whether to impose higher tariffs on electric vehicles (EVs) manufactured in China, following the United States' recent significant tariff hikes on these imports. Trade Minister Mary Ng, in a phone interview from Peru where she is attending the Asia-Pacific Economic Cooperation forum, stated, "We are looking at this very carefully and we have an open dialogue with our American partners," as reported by Bloomberg News.

ESG, Innovation, and Talent: Bosch’s Impact in Mexico

Q: How does Bosch approach ESG, and how do suppliers align with its principles?

A: ESG is highly important for Bosch. Our local suppliers are both international companies with operations in Mexico and Mexican-owned businesses. While international suppliers already comply with global ESG standards, Mexican suppliers have also made significant advances in the field. Having a mix of both types of suppliers is valuable, but compliance is essential for all. Every year, we have a business partner day where we discuss ESG requirements. We have observed that the supply chain understands the need to comply with ESG, so we are not starting from scratch.

Nissan Delays EV Expansion Plans in US

Nissan has announced a temporary halt to its expansion and development plans for electric vehicles (EVs) in the United States, specifically pausing progress on two battery-powered sedans slated for launch in 2027, to prioritize more SUV models.

Auto Industry Presents Opportunities to Mexico's Candidates

Representatives from key industry associations, including AMDA, AMIA, INA, and ANPACT,  presented a document outlining the strengths and opportunities of the automotive sector to Mexico’s presidential candidates. This document underscores the critical role of the industry, which significantly contributes to the country's GDP and attracts substantial foreign direct investment.

China Weighs 25% Tariff Rise on Gasoline Cars Amid Trade Friction

China is contemplating increasing import tariffs on large gasoline-powered vehicles to 25%, in response to recent trade measures by the United States and the European Union. This potential move is under consideration as the country faces higher US auto import duties and possible additional tariffs from the EU, according to statements from Liu Bin, an expert at the China Automotive Technology & Research Center (CATARC).