Crisis Leads to Innovation in the Automotive Industry

The current international context is forcing the automotive industry to rapidly adapt to unforeseen challenges. Tarsicio Carreón, President, Chihuahua Automotive Cluster, has compared the global context to a test with unexpected questions that no one was prepared for. Halts in production, chip shortages and lack of resilient supply chains are threating the stability of the automotive industry at an unexpected scale.

However, crises also lead to innovation. User experience technologies in vehicles, increasing use of mobility apps and a leather-free Volvo are slight glimpses of the future of the automotive industry that had no other option than to transform.  

The future of the automotive industry in Mexico is also looking bright. Mexico has strengthened automotive trade relations with Argentina, while EU countries have shown interest in investing in the sector, specifically in the Bajio region. Moreover, labor rights are also being prioritized by industry leaders through binding agreements in the region. Nonetheless, Mexico is still facing supply chain disruption that could lead to the closing of automotive plants.

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Mexico Automotive Summit Celebrates 2022 Editions

Automotive industry leaders gathered virtually for the latest edition of Mexico Automotive Summit. Despite the challenges brought by the pandemic, the automotive industry remains one of the key drivers of the Mexican economy. Yet, companies at all levels of the supply chain must adapt to new technological and sustainability requirements to ensure strong regional competitiveness and a seamless transition to a carbon-free operation. If you could not join the event, check out the highlights at Mexico Business News.

Inward Look to Pass the Test of Today’s Automotive Challenges

Carreón compares the current automotive industry crisis to a school test. “In this case, the teacher is adding new questions and other topics on the same day of the test. There is no way someone could have foreseen the current global scenario nor the one that will emerge in the coming months and years.” To face this, Carreón proposes evolution through introspection. Learn what Carreon suggests to evaluate during the introspection process of a company.

Automakers Are Increasingly Adopting Circular Economy Strategies

Fibers made from plastic bottles, recycled steel and bio-based plastics, are examples of the sustainable materials being used by automakers as part of their commitment to a greener future. Volvo, for example, has released in Mexico its new C40 Pure Recharge, which has partially recycled carpets and is the brand’s first fully-electric motorized automobile. Likewise, Mercedes-Benz uses recycled materials for some of its vehicles, such as the EQS, which is composed of 80 percent recycled steel. Learn about other vehicles that are made from recycled materials here.

User Experience Will Shape Smart Cars

User experience is transforming the way in which automakers and drivers think of vehicles. While drivers enjoy a different driving experience, automakers can also benefit from data-driven methods that can strengthen customer brand loyalty. Cars are starting to become smart devices of their own but companies are still learning how to incorporate user experience properly into their model interfaces, as reported by MBN.

Mexico, Argentina Strengthen Automotive Trade Relations

Argentina and Mexico reached an agreement on trade preferences regarding the automotive industry. Modifications to ACE (Economic Complementation Agreement) 55 and ACE 6 were made “as a follow up to the pledge made by the Executive Presidents of both Mexico and Argentina to strengthen the trade relationship and increase the level of trade and investment,” said Luz María de la Mora, Mexico’s Deputy Minister of Foreign Trade. Although no free trade agreement was signed, negotiations on a total opening of the automotive market is not yet discarded. Learn more about the specific agreements here.

Guanajuato Government Signs Agreement to Protect Labor Rights

Guanajuato’s Undersecretary of Labor and Social Security and the Pan American Development Foundation (PADF) signed a collaboration agreement to train employees in labor topics such as unions, legitimation of collective bargaining agreements and prevention of harassment. The state’s workforce will benefit from this agreement amid the generation, compilation, standardization, consultation and exchange of information on compliance with labor rights, as reported by MBN.

EU Increases Investment in El Bajio

EU countries are increasing their interest in the Bajio region, specifically in the automotive sector. “Looking at the Bajio region, there are three sectors where we naturally coincide, the first being the automotive and advanced engineering sectors, where there is a fantastic complement in automation processes,” said Juliana Correa, Director, British Embassy, during Gran Bajio Day. Also, a new Swedish automotive plant will be constructed in Queretaro and will provide 200 jobs in its initial stages. Moreover, Germany’s Daimler Truck welcomed a Bajio-based company to its network. Learn more about the EU’s investment plans for the Bajio here.  

Mexican Plants Could Halt Production Amid Chip Shortages

Around the world, automakers are halting their production due to the global semiconductor shortage. In Mexico, Mazda and Toyota have already closed some of their plants amid the global crisis. “It is very likely that new halts will occur, depending on the availability of semiconductors or chips,” said Fausto Cuevas, Director, AMIA. The current conflict in Ukraine, the lack of resilience of supply chains and chocolate cars regulations have increased uncertainty on when the Mexican automotive industry could recover. Read the full article here.