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News Article

OEM Operations still Down in Mexico

By Alejandro Enríquez | Mon, 03/23/2020 - 17:14

Over the weekend, more OEMs in the country announced a cease in their operations, while others extended their suspensions. Notably, JAC, manufactured by Giant Motors, and Kia carry on with production. 

The market can expect a cut in production of around 160,000 units.

Mexico is home to Audi, BMW, FCA, Ford, GM, Honda, JAC, KIA, Mazda, Nissan, Toyota and Volkswagen, all of which have taken a hit from the COVID-19 pandemic in Europe and Asia. The Top 3 manufacturers in the country, GM, Nissan and FCA Group, produced 350,014 units in the March-April 2019 period, which is almost 6,000 units a day. Considering an average cease in operations of 18 days, COVID-19 measures could cost GM, Nissan and FCA production of around 112,000 units, assuming operations will resume on schedule. Taking into account all suspended operations, with similar calculations, the market can expect a cut in production of around 160,000 units.

     OEM

                     Operations Suspended

      Production

March – April 2019

Audi

March 23 – April 13

32,769

BMW

March 28 – April 19 (Eastern break extension)

800

FCA

March 19 – end of March

91,825

Ford

March 19 – March 30

52,154

GM

SLP: March 20 (assembly) – until further notice

Silao: March 30 (assembly) – until further notice

Ramos Arizpe: March 30 – until further notice

Toluca: March 26 – until further notice

149,668

 

Honda

March 23 – March 31

37,232

JAC*

Has not announced

826

Kia

Continues operations

46,800

Mazda

10 Days starting March 25

Eastern break from April 9 to April 17

17,244

Nissan

March 25 – April 14

108,521

Toyota

March 23 – April 5

33,432

Volkswagen

March 30 – April 12

75,712

 

Whether these measures are extended or not, some of these decisions come due to the lack of auto parts, as well. Almost two weeks ago, Minister of Economic Development of Aguascalientes, Manuel González, told Reuters that some automotive suppliers in the state, home to Nissan, have enough stock only until the end of March. As disruption in the supply chain continues, strategies among automotive suppliers are yet to be seen.

The data used in this article was sourced from:  
Reuters, INEGI, OEMs
Photo by:   Pixabay
Alejandro Enríquez Alejandro Enríquez Journalist and Industry Analyst

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