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News Article

OEMs Expand Operation Suspensions

By Alejandro Enríquez | Mon, 04/06/2020 - 14:03

Volkswagen, Honda, Ford and Kia announced they are extending their cease in operations, while AMDA responds to AMLO’s address to the nation.

Some OEMs in the country are extending the dates in which they will resume operations following the COVID-19 contingency. Most of these suspensions match the eastern break that plants usually follow.

Last week, Volkswagen announced operations will remain suspended at its facilities in Puebla and Silao until April 30, two weeks more than originally planned. Meanwhile, Honda in Celaya was about to restart operations on April 1, but decided to extend its break until April 14. Ford had announced its North American plants would open before the peak of cases in the US rose. Now, the company announced all North American facilities remain closed until further notice.

Notably, KIA, the only large OEM still producing, announced it suspended operations starting April 6 "due to a government request" and until further notice. This comes after the National Health Council declared a health emergency in Mexico, implying that the federal government has extended the suspension of non-essential activities until April 30.

INA, ANPACT, AMDA and AMIA, the four largest automotive industry associations, issued a press release on March 27 – three days before the declaration of the health emergency – asking the federal government to consider automotive activities as essential given mobility needs.

Yesterday, President López Obrador, addressed the nation on the measures the federal government will take to cope with COVID-19 pandemic. The automotive Industry, as well as other economic sectors, expected fiscal relief policies to be announced but there were none. "Private sector-related proposals or programs on fiscal policies and economic growth were not heard," tweeted AMDA soon after the president's address.

"We are the only country who rejects supporting private investment while turning its back on workers. We are certain Mexico will thrive after this crisis with the social solidarity of both workers and businessmen, even with the abandonment of its own government," said AMDA.

The data used in this article was sourced from:  
AMDA, Ford, Honda, Kia
Photo by:   GM
Alejandro Enríquez Alejandro Enríquez Journalist and Industry Analyst