Highlights Leading to the Big Reopening

Last Friday, INEGI published production and exports results for OEMs in the country. A historic low was reached with an annual fall of 90.3 percent in exports and 98.8 percent in production, with only 3,722 new units manufactured in the country.

However, the automotive sector starts to breathe again as the General Health Council finally deemed the transportation equipment manufacturing sector as essential. Automakers and auto parts manufacturers are setting in place all necessary health measures to assure a safe return to the workplace.

As the COVID-19 pandemic is shaping the new normal for the Mexican economy, INA sees opportunities ahead after the worst of the pandemic has passed, including opportunities Mexico can take in the reshaping of North American supply chains under USMCA.

Ready to hit the road? Here is your weekly news roundup!

Mexico

• Automotive Industry Officially to Resume Operations. After endless efforts made by industry leaders, the General Health Council will allow the sector to resume operations shortly.
• Car Production Falls 98 Percent in April, Exports Fall 90 Percent. See the full performance of the automotive sector in April here.
• INA Sees Opportunities for Auto Parts Sector After COVID-19. Oscar Albin details the upcoming opportunities for auto parts manufacturers to brave a new trade environment.

International

• FCA-PSA merger deal will be revised by European regulators on June 17.
• Nissan sales in China rose by 1 percent in April.
• Toyota cuts its North American output by 29 percent through October.
• Japanese government will support the automotive sector with funds.
• Musk resists shutdown and sues California threatening to leave.