Mexico Becomes Fourth Global Auto Part Manufacturer
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Mexico Becomes Fourth Global Auto Part Manufacturer

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Alfonso Núñez By Alfonso Núñez | Journalist & Industry Analyst - Wed, 04/13/2022 - 13:21

Mexico has unseated Germany as the fourth auto parts manufacturer in the world as the industry continues recovering. However, an increase in illegal vehicle imports and rising EV manufacturing prices as a result of sanctions on Russia could delay its recovery.

Meanwhile, the US’ Labor Deputy Secretary visited San Luis Potosi to examine the state’s Labor Reform. Stellanis and Ford were listed as two of the Top 25 employers in the country. Mercedes-Benz opened an in-house technology center in Sindelfingen, Germany, while GM and Honda announced a collaboration for accessible EV production. Finally, Audi celebrated the manufacturing of 800,000 units in its Puebla plant.

Buckle up! This is the week in Automotive:

EV Battery Manufacturing Affected by Russian Sanctions

International sanctions on Russia due to its conflict with Ukraine have impacted EV manufacturing by increasing nickel prices over 40 percent since the start of the invasion. Russia is a top supplier of class 1 refined nickel, a metal essential to battery production. With sanctions only increasing in severity, EV manufacturing prices could be further impacted. 

Mexico Unseats Germany in Auto Parts Production

Despite continued challenges, Mexico has unseated Germany as the fourth top auto parts manufacturer in the world. In 2021, Mexico’s automotive production was valued at US$94.78 billion, while Germany lagged behind at only US$87.22 billion.

Auto Industry Responds to Corruption Accusations

The automotive industry denied the federal government’s accusations of corruption during the passing of the Energetic Industry Law (LIE). The automotive sector continues to advocate against the new changes to the law proposed by President Andrés Manuel López Obrador’s administration because of their potential impact on the automotive sector.

Mercedes-Benz Opens In-House Software Integration Center

Mercedes-Benz has continued its expansion by opening a new US$217 million software hub at the Mercedes Technology Center (MTC) in Sindelfingen, Germany. With the center, Mercedes-Benz aims to strengthen its approach for cross-functional collaboration and support industry trends such as infotainment and driving assistance systems.

Stellantis and Ford: Best Employers in Mexico’s Auto Industry

According to LinkedIn’s 2022 rankings, Ford Mexico and Stellantis Mexico ranked in the Top 25 best employers in Mexico. The recognition follows the automakers’ investment in career growth opportunities for their employees.

US Labor Deputy Secretary Visits SLP Auto Cluster

The US’ Labor Deputy Secretary Julie Su visited San Luis Potosi to meet with the state’s automotive industry and governmental representatives to see the progress the state has made regarding the Labor Reform. Secretary Su commended San Luis Potosi on the progress made in the year but emphasized how much work is yet to be done.

GM and Honda Ally to Offer Accessible Electric Vehicles

The automakers GM and Honda formally announced a collaboration to develop EVs at accessible prices. By standardizing processes, these companies aim to offer world-class quality EVs at smaller prices, potentially allowing these vehicles to enter numerous markets including in Mexico’s.

Illegal Vehicle Keep Entering Mexico’s Automotive Market

Although financing and light vehicle sales continue recovering, illegally imported vehicles keep presenting a challenge. The sectors could be impacted by the expansion of President López Obrador’s chocolate car decree beyond US-Mexico border states.

Audi Celebrates Q5 Production in San Jose Chiapa

Five years after its operations reached Puebla, Audi has produced over 800,000 Audi Q5 in its San Jose de Chiapa plant. These vehicles were produced under sustainability and environmentally responsible standards as Audi reduced the water used to manufacture the Q5 vehicle in the plant by 50 percent.

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