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News Article

The Electric Automotive Industry Experiences Boost in Operations

By María Fernanda Barría | Fri, 04/30/2021 - 13:44

Michelin Mexico aims to start producing tires for electric vehicles for brands like Tesla, Mercedes, BMW and Land Rover by 2022 in its manufacturing plant in the city of León, Guanajuato. The majority of the companies have reported that by 2030 they want to sell between 50 and 70 percent of electric vehicles. Pierre Louis Dubourdeau, president of Michelin in Central America, explains that the company will benefit from a platform that ensures electric cars' growth, reported Forbes. For instance, electric vehicles' growth represents an excellent opportunity for the company, as Michelin is the leader in this segment because of its experience by sponsoring Formula E. The company is committed to reducing pollution on the planet and expects that by 2050 all its tires will be made using sustainable materials.

Even though the automotive industry has been affected by the semiconductor shortage and interruptions in the supply chain, several automotive companies have started producing their electric vehicles to face a growing demand and address the climate change agenda. This is the case of General Motors; the company published a new strategy to decarbonize the company by 2035 and aims to stop producing diesel and gasoline cars in Mexico by the same year as well, and plans to only to manufacture electric vehicles. In addition, as previously reported by MBN, the company seeks to start the production of batteries and electrical components during 2Q21 and has already published the investment of more than MX$1,000 million to begin producing electric vehicles in the plant of Ramos Arizpe, Coahuila by 2023. Marcos Madrid, manager of the Ford plant in Cuautitlán said Ford has already followed this trend with its first electric car in Mexico named Mustang Mach-E. Madrid said the company has already strategized a plan for the manufacture of the vehicle to continue operations despite the shortages in the industry and admits that, if necessary, they would adjust the forecast's production, reported Forbes.

The perspective for the automotive industry in the northern region is improving, especially with the support of US President, Joe Biden. The White House affirmed that Biden's plan to create jobs by electrifying vehicles includes funds to stimulate production, increase the market for batteries and apply new tax incentives. Mexico could benefit from the initiative thanks to the USMCA agreement and would allow the country to increase its exports, positively impacting the automotive and manufacturing industries.

The data used in this article was sourced from:  
Forbes, Expansión, MBN
María Fernanda Barría María Fernanda Barría Junior Journalist and Industry Analyst