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Weekly Roundups

New Products, Strategies, Rules in the Automotive Sector

By Sofía Hanna | Thu, 09/02/2021 - 12:48

This week, the President and Executive Director at Michelin Mexico, Pierre Louis Dubourdeau, discussed the new measures and strategies the company is taking as it strengthens its sustainability commitments. Miguel Elizalde, President of ANPACT, addressed how the New General Law of Mobility and Road Safety will impact the sector. Finally, Israel Escutia, CEO of México GarantiPlus, shared future projects and expectations for the company. 

 

 Interested in more? Here are the week’s major headlines in Automotive!

 

  • Pierre Louis Dubourdeau, President and Executive Director at Michelin Mexico, told Mexico Business the strategies that Michelin is implementing to enforce sustainability practices in its operations in the country. Michelin is also introducing tires for EVs and Fleet Management Services, as it continues monitoring its environmental impact to reduce it. “We also want to explore the community element of sustainability through projects in the surrounding communities for social development, which can also include initiatives like tire recycling.” Dubourdeau also explained that while the Mexican market is recovering, “the end-customer segment is recovering more slowly and might not fully bounce back until 2022.” He adds that under these circumstances, agility will be essential for companies’ survival. “We are experiencing an unstable economic environment affected by logistics disruptions and inflation, which creates uncertainty. Being agile means rethinking forecasting processes, incorporating AI into operations and shortening supply chains. The industry will experience relocation and regionalization trends, which is one of the reasons we continue to invest in Mexico.” 

 

 

  • Heavy vehicle imports increased by 25.1 percent during the first seven months of 2021, compared to last year’s figures, reported ANPACT. These numbers contrast with the low sales and production struggles in the local automotive industry. “The increase in imports of junk vehicles for passenger use reduces the quality of service for the users in terms of safety and efficiency and generates negative environmental conditions, which is why it is necessary to promote public policies aimed at promoting the renewal of passenger transport, with incentives and financing through the Development Bank, as it is carried out in the countries that have committed in favor of the environment,” said Miguel Elizalde, President of ANPACT. This year, the heavy vehicle market recovered from a tough 2020, during which the COVID-19 pandemic “severely affected” sales. However, sales are still below pre-pandemic levels. During 1H21, sales shrank by 32.8 percent in comparison to 1H19, when sales of heavy vehicles amounted to 21,888 units.

 

 

  • ANPACT’s Elizalde also told Mexico Business how ANPACT is collaborating in the creation of the New General Law of Mobility and Road Safety, which would include the creation of a fund to improve mobility as it should not be restricted to infrastructure. Elizalde also mentions how ANPACT is helping companies comply with the USMCA rules one year after it entered into force. “There were new requirements like steel and aluminum and labor value content that represent challenges during the implementation to the industry since there was no precedent in the past. Today, all companies comply with all the requirements and disciplines without exception. We are ready to continue our exports through the USMCA integration.” Finally, Elizalde mentions that new heavy-vehicle power technologies will transform the sector because new technologies are arriving in the country, including electromobility as many light-vehicle manufacturers are committing only to produce EVs. The sector will increasingly demand vehicles powered by alternative sources of energy, including natural gas, hybrid, electric and hydrogen. Mexico has already exported natural gas, diesel, electric and even hybrid heavy vehicles. 

 

 

  • Israel Escutia, CEO of México GarantiPlus, discussed with Mexico Business the opportunities in a consolidated extender warranty market. GarantiPlus recently partnered with Mercado Libre and its next step will be to create warranties for buyers, he added. “We are also working with OLX Autos in Mexico, with plans to expand with that company throughout Latin America.” Escutia also mentions that GarantiPlus’s plans for the future will help companies and small businesses acquire their own warranty systems. “We have all the necessary legal, management and training expertise to provide support and allow companies to access warranty markets more easily. At the international level, our goal is to enter more countries in Latin America and to explore opportunities in the US market.” 

 

 

The data used in this article was sourced from:  
MBN
Sofía Hanna Sofía Hanna Junior Journalist and Industry Analyst