Labor, Rules of Origin: USMCA Controversies in the Spotlight

Two years after its implementation, the USMCA remains in the spotlight as its Rapid Labor Response Mechanism has boosted labor rights complaints. This week SNITIS said it would file a labor complaint against BBB company. Meanwhile, hearings began to discuss the US’s interpretation of automotive rules of origin.

The National Auto Parts Industry (INA) association and Bridgestone also shared their priorities with MBN; both have a strong commitment to sustainability.

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SNITIS to File Labor Complaint Against BBB Automotive Plant

A Mexican independent union will file a labor complaint against the manufacturing company BBB Industry for alleged violations of workers’ rights. The National Independent Union of Industrial and Service Workers (SNITIS) said it will submit the complaint in the US citing alleged intimidation and threats to its employees, among other irregularities, during a contract vote by union members last month. Labor rights challenges have been more frequent since the implementation of the Rapid Labor Response Mechanism created by the USMCA. Read the full story here.

Sustainability, Supply Chain, Investment Are INA’s Priorities

INA is focusing on foreign trade, labor matters, original equipment and aftermarket as it works to consolidate the Mexican map of auto parts manufacturing. Sustainability has also become a cornerstone of INA’s work. “We are quick to incorporate new technologies so our associates can remain up-to-date regarding the use of new materials and fuels, such as aluminum, lithium and hydrogen. We also closely follow electrification trends, alongside leading countries such as the US, Canada, Japan and Germany,” said Francisco González, Executive President, INA, to MBN.

Canada, Mexico Dispute US's Interpretation of Rules of Origin

The USCMA dispute panel held hearings to address automotive rules on Aug. 2 and 3 in Washington D.C. after Canada and Mexico requested them in January 2022. Both countries claim that the US is interpreting the rules of origin in a way that was not agreed to in the free trade agreement. The final ruling of the panel will be announced by the end of 2022. Read the full story at MBN.

Edgar Carranza: New CEO of Hyundai Motor Mexico

Hyundai Motor North America welcomed Edgar Carranza as the new CEO of Hyundai Motor Mexico. In his new role, Carranza will be responsible for operations, marketing, sales and customer satisfaction. As the former COO, Carranza's leadership was essential for the growth of Hyundai in Mexico. “In May 2022, we celebrated eight years of operations in Mexico and our sales surpassed 300,000 units. This motivated us to continue proving our commitment to be the users’ preferred brand. Hyundai has introduced innovative products with technological features and an excellent cost-quality relation to the Mexican market,” said Carranza to MBN.

Sustainability, Mobility Are Priorities for Bridgestone

“From 2022 to 2050, Bridgestone will continue working as a sustainable solutions provider. The company’s vision encompasses energy, ecology, efficiency, extension, economy, emotion, ease and empowerment to bring a different perspective to each part of the business. We are not just about selling tires; we want to provide sustainable mobility solutions,” said Miguel Pacheco, Country Manager Latin America, Bridgestone, to MBN. Read the full interview here.

Join the Conversation in Mexico Automotive Summit 2022 Echo

The automotive industry is facing one of its most important shifts in history. Vehicle manufacturers around the world are transforming in response to shifting attitudes to mobility and transportation systems, opening the door to new technologies. However, these changes need both private and public actions, which will also mean new business opportunities. The present and future of the industry will be discussed in depth by key industry leaders during Mexico Automotive Summit 2022 Echo. Get your tickets here!