Northern States to Boost Production: The Week in Automotive

After the automotive industry finished 2021 with a 6.8 percent growth instead of the forecasted 24 percent growth, industry experts are cautious in their recovery expectations.

Here is the Week in Automotive!

“Chocolate” Car Legalization on Stand By

Nearly three months after President Andrés Manuel López Obrador announced a decree to legalize illegally imported “chocolate” cars in the country, there have been no consultations with the automotive industry to determine the logistics of the decree, said Guillermo Rosales, Executive President, Mexican Association for the Distribution of Automobiles (AMDA). The federal government had previously stated it would reach out to the automotive industry to iron out the requirements.

Production and Exports Sink

Mexico’s automotive production and exports continued to decrease in Dec. 2021, as the month fell short in comparison to 2020’s numbers and remains far away from 2019’s, data from the National Institute of Statistics and Geography (INEGI) shows. December’s auto sales amounted to 97,365 vehicles, slightly up November’s 82,829 and October’s 76,640. Prior to this, sales had been steadily decreasing since May as the semiconductor shortage heavily affected auto manufacturers.

Investment Spurs in Coahuila

POSCO International’s US$43.6 million investment in an EV traction motor core plant in Coahuila aims to target North America. “We decided to make this investment to target North America, the largest market for electric vehicles, and strategically prepare for the US government’s green mobility policy,” said representatives from POSCO International in a company statement. The plant will be built in Ramos Arizpe, an important hub of auto manufacturers housing plants from Fiat Group, General Motors and Chrysler, among others.

USMCA Controversies Go On

Canada announced it will join Mexico's request to form a controversy panel against the US to resolve differences in the interpretation of the rules of origin for the automotive industry. On Jan. 6, the Mexican government requested the establishment of a dispute settlement panel under Chapter 31 of the USMCA due to differences in interpretation and application of the rules of origin of automobiles.

Aguascalientes to Work on Production Policies

Governor of Aguascalientes Martín Orozco Sandoval held a meeting with representatives of the Mexican Association of the Automotive Industry (AMIA) to support the design of strategies that promote automotive production. The governor stressed that his administration has supported actions that generate conditions for growth, which can be seen in policies that have promoted the development of new technologies, the protection of the environment and the provision of economic support to families.

GM Builds Platform of Used Cars

General Motors (GM) announced on Tuesday that it will launch a new service for buying and selling used cars online and in dealerships. CarBravo will be launched in the spring of 2022 and the company will immediately begin recruiting Chevrolet, Buick and GMC brand dealers who will participate in the service, according to Forbes.