Automotive Industry, Essential or Not?By Alejandro Enríquez | Thu, 04/23/2020 - 11:53
Lobbyist on both sides of the border have urged the Mexican government to consider automotive value chains as an essential business so companies can keep operating despite the COVID-19 outbreak. Even the Pentagon has raised its voice claiming “Mexico right now is somehow problematical,” while announcing officials will speak to the Mexican Minister of Foreign Affairs.
At the same time, the only activity within the automotive industry value chain that is still operating is the aftermarket. ARIDRA’s president, Antonio López, has highlighted the sector’s ongoing commitment to provide service to all the vehicles that need it while helping more than 45,000 spare shops to keep operating under the strictest health conditions.
While suppliers are still not operating, there has been an ongoing discussion on what the role of OEMs and Tier 1 companies should be to protect the smaller players in the supply chain.
Ready to hit the road? Here is your weekly news roundup!
- How to keep automotive suppliers alive? As OEMs suspended operations, the impact for suppliers has put some in peril. Experts discuss how to overcome the situation.
- The future of mobility is in the air. Toyota and Hyundai are the first large automakers partnering toward the development of air vehicles.
- FCA and PSA merger could be reviewed amid COVID-19. Both groups are reviewing the terms of shareholders’ dividends amid the economic downturn COVID-19 has caused.
Automotive as an Essential Activity
- Aftermarket remains an essential activity. 45,000 shops across Mexico will remain open to support the vehicle park.
- US companies urge AMLO not to break supply chains. Presidents and CEOs of more than 327 US automotive companies signed a letter addressed to the President of Mexico.
- CONCAMIN urges the government to reactivate export industries.
- Truck production diminished 24 percent in February and exports decreased by 23 percent, according to ANPACT.
- Ford announced it will produce more than 100,000 facial shields at its Chihuahua’s facilities, under the “Proyecto México” initiative to help the country produce medical equipment.