EVs Take the Spotlight

Carbon emission commitments by multiple nations and companies during COP26 are already transforming the industry as eyes turn towards the production of EVs. However, Mexico’s ability to reach these commitments is uncertain due to the low popularity of EVs in the country and a proposed energy reform. These circumstances, have led Uber Mexico to look instead towards carbon-offset projects and GM to question their future investment in auto production in the country.

Meanwhile, local production of auto parts keeps pushing forward despite the ongoing semiconductor shortage, with new plants opening and achievements being met. US President Joe Biden’s proposed EV tax reform and drunk driving prevention measures could transform the global automotive industry. Smartphone manufacturing companies are also looking to contribute to Asia’s ever-expanding EV market.

This week in automotive:

Mexico

Uber Mexico Relies on Carbon Offsets to Neutralize Emissions

The international ride share app had committed to reaching net-zero carbon emissions without relying on carbon offsets by offering incentives for drivers to switch to electronic or hybrid vehicles. However, the company claims the transition to EVs is not realistic in countries like Mexico, where it has begun relying on carbon offset projects to reach its zero emissions goal.

Hidalgo Announces Production of Electric Vehicles

Giant Motors Latin America announced the launch of the JAC Mexico Pure Electric 2022 vehicle line at the fifteenth anniversary of its Sahagun City plant. The line will introduce more affordable EV options for Mexican drivers, hoping to increase the percentage of sustainable vehicles in transit.

GM Voices Concern Over Mexico’s Energy Policy

GM Mexico expressed concern over President Andrés Manuel López Obrador proposed energy reform, which the company believes will prevent it from achieving their net zero goals. GM warned that if the reform is passed, the company would not further invest in the country.

Auto Parts Factory Opens in Aguascalientes

Mextstamp has invested US$1.65 million in opening a new auto parts manufacturing plant in Aguascalientes. The opening further sets the state as an international location for auto parts production exported worldwide.

Audi Mexico Produces 750,000 Cars in Five Years

In the five years since its opening, Audi’s San Jose Chiapa plant has produced 750,000 SUV Q5 units, the brand’s most popular model in recent years. The plant was able to reach this goal even as the semiconductor shortage slowed down production earlier this month, setting the Puebla factory as one of Audi’s areas of focus.

International

US Law Requires New Vehicles to Measure Driver’s BAC

As a part of US President Biden’s now signed infrastructure bill, automakers will be required to include drunk driving detection systems into new vehicles as early as 2025. Overshadowed by the bill’s tax reform for US union-made EVs, the requirements could mean a legal shift in responsibility for drunk driving incidents from drivers to automobile manufacturers.

“Three Amigos” Discuss EV Tax Credit in Summit

During the summit, the subject of US tax cuts on domestic union-produced vehicles was a source of tension. Although Mexican officials have not commented on the topic, Canadian authorities confirmed their urgency to prevent the US from allowing the proposal to pass or to include other North American vehicles in the tax breaks as to not oppose USMCA agreements.

Smartphone Companies to Manufacture EVs

Smartphone manufacturing companies do not intend on being left behind in the race towards EV production. Companies like OPPO, Huawei, Xiaomi and Apple are all in the process of either launching or preparing their own lines of EV to hit Asian markets in the next couple of years.