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Weekly Roundups

Nuevo Leon, Bajio Region Development; USMCA Dispute

By Antonio Gozain | Thu, 11/04/2021 - 14:41

Kansas City Southern (KCS) announced the construction of a new vehicle distribution center in Queretaro, while Nuevo Leon began developing an EV Research & Development Center. Meanwhile, Mexico’s US ambassador warned the US Congress and Senate about possible USMCA violations, following the proposed tax-breaks legislation for the purchase of US-produced EVs.

 

Ready? This is The Week in Automotive!

 

Mexico Begins Search for USMCA Auto-Dispute Panelists

The months-long dispute over the interpretations of rules of origin in the automotive industry as per the USMCA might finally reach an outcome as Mexico seeks arbitration from a panel of experts. In just two weeks, the decision will be passed on to that panel and Mexico is not wasting any time to make sure it is made up of the right candidates.

Energy Reform Threatens Auto Industry

President Andrés Manuel López Obrador’s energy reform, which aims to modify Constitutional articles 25, 27 and 28 of the Magna Carta, has been criticized for raising carbon emissions by up to 65 percent at a time when the automotive industry focuses on moving towards environmentally friendly cars. The industry may not seem like the player most directly affected by the reform but it could experience some of its biggest impacts.

Read about the possible threats to the auto sector here.

Bajio Region to Build New Vehicle Distribution Center

KCS announced the construction of a new vehicle distribution center (VDC) in the state of Queretaro to meet the demand of Mexico’s key regions, from Mexico City to the northern border. The new hub will be developed jointly by KCS, SIPSA and TDG.

Nuevo Leon to Build Electric-Vehicle R&D Center

While the Bajio region continues expanding its manufacturing capacity, Nuevo Leon focuses on the development of an EV Research & Development Center as part of CLAUT’s strategic plans for 2025.

The alliance will launch the Agents of Change - Lean Six Sigma training program, which focuses on the automotive industry specialization and will allow a companies’ talent to certify in this methodology. The training will provide the industry with good practices in continuous improvement based on a global benchmarking process to position Mexico as a reference in Latin America.

Auto-Parts Bonds Drop Due to Microchip Shortage

The global shortage of microchips hit Mexico harder than most auto-manufacturing countries, as shown by most recent auto-parts bonds returns. The global automotive parts manufacturing companies headquartered in Nuevo Leon Nemak SAB and Metalsa SA are two of the manufacturers most affected by the ongoing microchip shortage. Both companies saw their bonds post the worst returns among market peers in the last six weeks.

US Tax Break for Electric Vehicles Violates USMCA: Mexico

Mexico’s US ambassador warned the US Congress and Senate that a proposed legislation regarding tax breaks for the purchase of US-produced electric vehicles would violate trade agreements and harm the sale of electric vehicles (EV) worldwide.

Autonomous Delivery Startup Nuro Lands Investment from Google in US$600 million Round

Autonomous delivery vehicle maker Nuro raised US$600 million in its latest funding round, the Silicon Valley-based startup said on Tuesday. The funding round, led by Tiger Global Management, lifted Nuro's valuation to US$8.6 billion from US$5 billion, reported Reuters.

Antonio Gozain Antonio Gozain Journalist and Industry Analyst