COVID-19 Special: Suppliers Face the Industry Shutdown

As Phase 3 of the pandemic continues in Mexico, automotive-related activities remained labeled as “unessential” by the Mexican government. Efforts have been made by lobbyist at both sides of the border without success. Suppliers in the injected plastics and automotive textile segments explain how they are enduring the current halt in operations.

Alian Plastics is a Tier 2 company specialized in high-tonnage plastic injection and services to optimize production capacities. In the automotive sector, the company has worked with Magna, Dräxlmaier, Commercial Vehicle Group and Continental. Alian Plastics’ CEO, Felipe Villareal, affirms that in times of crisis, strong, creative and human leadership is most needed. “In times when information changes by minute, company leaders need to be one step ahead to get the information needed to set the company’s goals.” Creativity, he adds, can keep the team motivated about the challenge we are all facing.

Coats, with more than 250 years of experience, has been a world leader in thread manufacturing and is the only truly global supplier of thread for industrial applications. Wenevir Maldonado, Commercial Director Latin America North of Coats, highlights adaptability as a key value amid the pandemic or any other crisis. “We have been participating in a great number of webinars in North America and in Europe. We will have to readjust our numbers but we will remain close to our clients,” she says.

Both companies are strong members of the automotive supply chain and are experiencing first-hand what the situation is for automotive suppliers. “Last week, we ceased to deliver products for the automotive industry. However, the automotive industry is really dynamic, no OEMs have withdrawn production orders for 2020 and 2021 production. The worst-case scenario would bring delays. The best thing we can do right now is to back up our clients,” says Maldonado.

In practical terms, there is no light-vehicle production in Mexico given that most OEMs suspended operations since late March and have extended suspensions until the first week of May. “We have been really active in getting in touch with our customers. They are all hopeful that we will restart operations in Mexico on May 5. The industry assumes that US plants will start before that date so there can be a spillover effect but there are no guarantees,” says Maldonado.

The only certainty amid the restrictive production and mobility measures implemented by the government has forced companies to get creative on keeping their operations running smoothly. “Employee well-being, health and safety are a priority for Alian Plastics. We are strengthening internal and external communication channels not only to start new projects but also to address the daily requests we receive from our customers. These are part of the short-term variables an organization should focus on to see immediate results,” says Villareal. “We have learned that we cannot control everything but a company does need to change its strategies as the pandemic is changing the direction where the world is heading to.” He says.

As the unprecedented health emergency evolves throughout April, adjustments will have to be made. “Before this situation, we expected to grow 50 percent against our results from 2019. However, adjustments will be made every quarter, so we will have to wait and see where this is headed,” says Maldonado.