COVID-19 Stops Automakers Operations
The COVID-19 pandemic has infected the automotive industry. Across the world, automakers have suspended operations for between six days and four weeks. Global governments have asked companies to produce ventilators instead to cope with the lack of medical equipment in most affected countries.
In Mexico, half of the 12 OEMs in the country have announced a cease in operations in the country. A global cease of car manufacturing, specially in the US, can halt the steady growth of Mexican auto parts companies. Meanwhile, several dealership groups have asked the government for tax relief policies to cope with the economic downturn.
On a more positive notice, USMCA will be enforced on June 1, only after labor panelists are appointed.
COVID-19’s Effects on Mexico’s Automakers
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GM Mexico to halt operations in San Luis Potosi until April 13.
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Ford will suspend production in North America until March 30.
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Toyota stops production until April 6.
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Honda will cease operations for at least six days.
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FCA will suspend operations until the end of March.
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Audi stops production until April 13.
Effects on Other Parts of the Value Chain
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COVID-19 could halt auto part manufacturer’s steady growth rate, although it could accelerate the transfer of operations to Mexico.
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Mexican dealerships asked the federal government for tax relief strategies.
Global United Front Against the Virus
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Governments around the world urge manufacturers to ramp up production of ventilators and other medical equipment.
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Ferrari and Fiat in talks to produce more life-saving ventilators to cope with COVID-19.
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British automakers and aerospace groups answer call to produce ventilators.
COVID-19’s Effects on Automakers Worldwide
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Nissan’s UK and Spanish factories closed until further notice.
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Toyota to stop operations in Britain, Turkey, Poland and the Czech Republic.
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FCA Group to halt production for two weeks in Italy, Poland and Serbia.
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PSA Group will close its European factories until March 27.
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Renault to close factories in Spain until further notice.
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Volkswagen Group will suspend production at its 72 sites in Europe for at least two weeks.
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Ford and GM to stop production in North America.
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Volvo Cars to close plants in the US and Sweden from March 26 to April 14.
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Bentley will stop car production in the UK for four weeks .
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Tesla to suspend production in Fremont until further notice.
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BMW to suspend production in Europe and South Africa until April 19.
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Ferrari suspended production in its two plants until March 27.
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Rolls Royce will suspend production in the UK for two weeks.