Navigating COVID-19 WatersBy Alejandro Enríquez | Thu, 04/30/2020 - 12:52
The automotive industry has gradually adapted to the conditions imposed by COVID-19. OEMs are starting to seize the financial impact of the pandemic. For Nissan, Volkswagen and US automakers, the crisis will mean quarterly losses but for Daimler, positive numbers are still expected throughout the year.
US Senators have urged the US Department of State to coordinate with the Mexican Government on which activities should be considered essential, mainly due to the supply chain disruption this could cause to US essential businesses.
On a more positive note, USMCA will finally be enforced on July 1. Panelists for dispute settlement are yet to be appointed, while the automotive industry continues to insist rules of origin should be postponed.
Ready to hit the road? Here is your weekly news roundup:
USMCA Enforcement Scheduled for July 1. Last Friday, the USTR notified Congress that all procedures were done in Mexico and in Canada for USMCA to be enforced.
Mexican Government Fails to Support Automotive Sector. Despite the ongoing claims to label the automotive industry as essential, the Mexican government's stance has not changed.
What Has Been COVID-19’s Impact on OEMs’ Finances? OEMs have started to seize the financial impact of lower sales and production levels worldwide.
OEMs Extend Suspensions.
- Toyota announced it will restart operations on May 11.
- GM, FCA, Ford, Nissan and Volkswagen expect to resume operations on May 18.
- Audi announced it will restart operations until May 31.