Image credits: Audi México
News Article

Puebla Refuses to Restart Auto Operations on June 1

By Alejandro Enríquez | Tue, 05/26/2020 - 14:07

The automotive sector in Puebla is facing a new speedbump to resume operations as the state government holds firmly its decision to halt essential industries from resuming. "We must make sacrifices and we are doing so in a responsible way, looking for the general interest and what could be less painful to society. The decision is taken," told Governor Miguel Barbosa to El Sol de Puebla. 

Last Friday, the government of Puebla issued a decree that puts on hold the reopening of essential activities, including transport equipment manufacturing. The federal government had previously announced that between May 18 and May 31, companies could submit their sanitary protocols for validation, so that on June 1, at the latest, they could resume activities.

Industry associations, AMIA, AMDA, INA along with the Central Region Automotive Cluster (CLAUZ) and CONCAMIN, issued a joint press released over the weekend asking the government to reconsider its decision. "We ask Puebla's government to reconsider the decree issued last Friday, May 22, so that we are allowed to start the preparation, cleaning and planification of our plants as soon as possible," the statement said. 

CLAUZ groups industry players in the Puebla and Tlaxcala region, including OEMs Audi and Volkswagen. Earlier this month, Director General of CLAUZ, Mónica Döger told Mexico Business News that "there is a strong commitment from every company to take care of its employees; they are our priority. Naturally, there is a commitment with automotive supply chains at the national and international level. Our members have started to share incoming purchasing requests and naturally they are concerned given their contractual obligations, which could lead to client losses or penalties." 

Supply chains disruptions originated in Mexico can have repercussions in other OEMs manufacturing plants in the country and in the world. Just recently, after two days of resuming operations, Ford's plant in Chicago closed due to a shortage in components, Ford spokeswoman Kelli Felker told Reuters. 

CLAUZ’s president Ulirch Thoma reported to El Economista that companies had already planned to resume operations at between 30 to 40 percent of its capacity. If conditions allow it, they will increase production. COPARMEX’s representative in Tlaxcala, Noé Altamirano, said that in Tlaxcala, 45 percent of the affiliated companies will resume operations on June 1. 

The data used in this article was sourced from:  
El Sol de Puebla, Reuters, Milenio, El Economista
Photo by:   Audi México
Alejandro Enríquez Alejandro Enríquez Journalist and Industry Analyst