Auto Sector’s March Results

The automotive sector presented March results both in production and sales. For the latter, AMDA presented a 25.5 annual decrease in sales and expected this figure to increase above 90 percent in April and May due to the health contingency. AMIA reported a decrease in exports to North America, while insisting in delaying the enforcement of USMCA’s new rules of origin until 2021.

Last Sunday, President López Obrador addressed the nation to present his economic strategy to address the economic effects of the pandemic. However, according to AMDA, the president failed to listen to the private sector. Meanwhile, US business lobbyists are pressuring the government to label certain industries as ‘essential’ for them to carry on with production.

Ready to hit the road? Here’s your weekly news roundup.

Coping With COVID-19

• AMLO's economic plan fails to meet private sector needs, according to CCE. Last Sunday, President López Obrador addressed the nation but the message failed to listen to private sector proposals, said AMDA.
• OEMs have extended operations suspension, including Honda, Ford, Kia and more recently Nissan and Audi, which extended their suspensions until May.
• According to AMDA, auto sales are expected to fall above 90 percent in April and May, the lowest annual fall since 2009.
• According to Reuters, US business lobbyists are pressuring Mexico's government to label certain industries as "essential," so the health emergency measures do not affect their operations.

Trading Environment

• Mexico's government on Tuesday asked the US and Canada to grant its automotive industry extra time to adapt its supply chains to the new rules of origin for car manufacturing.
• Driverless vehicles have been a line of defense against contagion as they minimize the risk related to deliveries.
• COVID-19 creates an opportunity for Mexico's lithium industry, paving the way for EV development in Mexico, particularly in Sonora.