Mexico’s Auto Sector Weakens Ahead of 2026 USMCA Review

Mexico’s automotive sector faced mounting pressures this week, with a sharp 20% drop in foreign investment, falling exports, and supply-chain disruptions caused by nationwide blockades. Automakers are preparing for the 2026 USMCA review, while rising insurance costs and after-sales gaps from departing Chinese brands add further strain. Labor shifts at BMW, along with new logistics, mobility, and corporate developments, rounded out the week’s key industry movements.

More news below:

Bugatti Wraps Bolide Production, Delivering 40 Hypercars

Bugatti has completed production of the Bolide, its track-focused hypercar, concluding a project that began in August 2021 and produced 40 units. The final model left the Molsheim Atelier after a multi-year engineering and validation program that the company describes as one of its most demanding to date.

Mexico Sees Sharp 20% Decline in Auto Foreign Investment

Foreign direct investment (FDI) in Mexico’s automotive industry reached US$7.8 billion in the first three quarters of 2025, marking a 20.1% year-on-year decline, according to the Ministry of Economy. This contrasts with recent years' upward trend, when preliminary figures showed inflows rising from US$4 billion in 2022 to US$7.4 billion in 2023 and US$9.8 billion in 2024. Industry stakeholders attribute the slowdown largely to US tariff measures introduced during President Donald Trump’s second term, which began in January 2025.

BMW Names Klaus von Moltke CEO of San Luis Potosi Plant

BMW Group will implement a leadership transition at its San Luis Potosi plant effective Jan. 1, 2026, appointing Klaus von Moltke as President and CEO. He will succeed Harald Gottsche, who concludes his tenure after overseeing a period of expansion, model diversification, and preparations for BMW’s upcoming NEUE KLASSE production cycle. The plant is slated to become one of the manufacturing sites for the BMW iX3, a key model on the NEUE KLASSE platform.

Japanese Automakers Lobby to Safeguard USMCA Production Network

Japanese automotive manufacturers are positioning themselves ahead of the 2026 review of the United States-Mexico-Canada Agreement (USMCA), aiming to safeguard the US$87 billion they have invested in North America and the integrated production network linking the three countries. In coordinated submissions to the Office of the United States Trade Representative (USTR), industry groups emphasized that the agreement remains critical for investment planning, supply chain stability, and vehicle affordability in the region.

Guadalajara to Add 53 Electric Volvo Buses by Mid-2026

Guadalajara’s public transport system is preparing for a major transition to electric mobility with the acquisition of 53 fully electric Volvo buses. The fleet—comprising 31 Luminus high-floor units, 12 Luminus low-floor units and 10 articulated Volvo 7800 Electric buses—is scheduled to enter service between December 2025 and May 2026 as part of the city’s strategic expansion ahead of the 2026 FIFA World Cup. All vehicles are manufactured in Mexico at Volvo’s Tultitlán plant and carry the Hecho en México certification.

Mexico Auto Insurance Costs Poised to Jump 10–20% in 2026

Auto insurance premiums in Mexico could rise between 10% and 20% in 2026 due to recent changes introduced by the Ministry of Finance (SHCP) to the Federal Revenue Law (LIF). The modification eliminates the ability of auto insurers to credit Value Added Tax (VAT) on payments they manage on behalf of policyholders. Industry participants expect this to raise operational costs and push premiums higher across the market.

Toyota’s October Sales Hit Record as Global Volume Climbs 3%

Toyota reported record global sales for October, driven by growth in the United States that offset declines in China and Japan. The company said worldwide sales—including Daihatsu Motor and Hino Motors—rose 3% year over year to 1 million units. Toyota and Lexus sales in the United States increased 12%, while sales fell 6.6% in China and 4.2% in Japan.

Mexico Auto Industry Flags Supply Chain Risks from Blockades

Mexico’s main automotive associations warned that ongoing blockades on highways, rail corridors, and customs posts are disrupting supply chains connecting production in Mexico and the United States. The joint statement, issued Nov. 25 by the National Auto Parts Industry Association (INA), the National Association of Bus, Truck and Tractor-Truck Producers (ANPACT), Mexican Association of Automotive Dealers (AMDA), and the Mexican Automotive Industry Association (AMIA), expressed “deep concern” over the interruptions.

Mexico Records 14% Decline in Auto Exports, Extending Slump

Mexico’s automotive exports fell 14% year-on-year in October to US$16.12 billion, according to the National Institute of Statistics and Geography (INEGI). The contraction marks the sector’s largest annual decline since February and its fourth consecutive monthly drop. The weakness contrasts sharply with Mexico’s overall export performance, which recorded its strongest growth in nearly three years.

Geely, Zeekr Deliver 5,041 Vehicles in Lazaro Cardenas Debut

The Port of Lazaro Cardenas received the LNG-powered vessel JISU FORTUNE on Nov. 22, completing the unloading of 5,041 Geely and Zeekr vehicles at the Automotive Specialized Terminal (TEA), operated by SSA México. The operation set a new logistics milestone for the port and marked the start of planned future flows from the Chinese automaker through this key Pacific hub.

Mexico Faces After-Sales Gaps as China Auto Brands Exit Market

The recent withdrawal of several China-sourced vehicle brands from Mexico has created gaps in service, documentation and parts availability for existing owners, exposing the absence of regulations guaranteeing minimum after-sales support. The exits have left some buyers unable to complete regulatory procedures or obtain basic maintenance. “Cases like this are a consequence of the indiscriminate entry of Chinese brands,” Armando Soto, CEO, Kaso y Asociados, told Expansión. The situation highlights a structural vulnerability: importers can cease operations without requirements to ensure service continuity or parts supply.

BMW San Luis Potosi Staff Move to Replace CTM Deal

Workers at BMW’s San Luis Potosi plant have launched a formal process to seek representation by an independent union and replace the existing collective bargaining agreement held by the Confederación de Trabajadores de México (CTM). The move follows a recent contract vote in which 849 workers rejected the proposed revision, reinforcing long-standing concerns over a contract signed in 2014—five years before the plant began operations.

3M Launches 2026 Edition of Its ‘25 Women in Science’ Initiative

3M has opened applications for the 2026 edition of its “25 Women in Science” program, which this year will highlight women working in the manufacturing sector across Latin America. The company said the initiative aims to recognize professionals who are driving industrial progress through science, technology and innovation.