Production Sees Slight RecoveryBy Alejandro Enríquez | Thu, 08/06/2020 - 17:28
Automakers continue to present 2Q20 results. This week Hyundai and FCA provided a detailed picture of how the pandemic affected their business across different regions. As for the Mexican market, AMIA, AMDA and INA held their monthly press conference where they presented the results for vehicle production, exports and sales, as well as auto part manufacturing.
In this week’s featured interviews, take a sneak peek into Mexico Automotive Review 2019/20. Read our interview with the President of Chihuahua Automotive Cluster. Meanwhile, security concerns are gaining relevance and Grupo IPS, one of Mexico's leading private security firms, explains the role of private security companies amid the pandemic.
Sit tight, this is the Week in Automotive!
Hyundai Motor's 2Q20 Results
Hyundai presented its preliminary results for 2Q20. The fifth-largest automaker in the world saw an EBIT of ₩$596 billion (US$500 million), which represented a 57 percent decrease compared to the same quarter last year. Net income is expected to decrease by 62.2 percent. The company performed favorably in its domestic market while facing double digit negative growth overseas. Read the full story here.
FCA: Leader in Latin America in 2Q20
As operations and sales restarted in North America, so did FCA's profits. In its 2Q20 results, the group highlights that due to actions taken in North America against COVID-19, the company reached an adjusted EBIT of €$39 million (US$46.13 million). "Our second quarter showed that decisive actions and extraordinary contributions from our workforce enabled FCA to contain the impact of the COVID-19 crisis," said Mike Manley, CEO of the group on a statement.
Take a sneak peek into Mexico Automotive Review 2019/20. Read our interview with Tarsicio Carreon, President of the Chihuahua Automotive Cluster, who talks about the state's longstanding automotive vocation.
AMIA, AMDA and INA Address Automotive Performance in July
The industry starts to recover faster than expected. AMIA, AMDA and INA admit that the industry performed better than what was forecasted, largely due to the recovery seen in US demand for vehicles and auto parts. In terms of production, there was a positive year-on-year increase of 0.7 percent in July. Sales saw a year-on-year negative 31.3 percent in July.
Private Security Amid the Pandemic
"2020 will be an atypical and even tragic year. In addition to the more than 500,000 lives lost as a consequence of the pandemic, the generalized suspension of different sectors at the global level had unprecedented consequences for investors, business and employees," said Jorge Uribe, Commercial Director of Grupo IPS to Mexico Business News. Grupo IPS is a private security firm that provides services to industrial players. You can read the full story here.
In terms of mobility, companies maintain their bets on shared mobility. PSA Group's car rental and car-sharing division, Free2Move announced it is ready to receive investors, Reuters reported. At the same time, Uber announced it is going to buy Autoca, a British tech company focused on cab services.
In China, Japanese automakers have seen a double-digit recovery in July. Nissan reported an 11.6 percent growth, Toyoto a 19.1 percent and Honda 17.8 percent.