Image credits: MBN
Weekly Roundups

Unions, Industry Development: The Week in Automotive

By Alejandro Enríquez | Thu, 08/19/2021 - 17:46

The reform of Mexico’s labor law in accordance to the USMCA’s Chapter 23 guidelines continues to bring challenges for companies in the automotive sector. This week, GM, Volkswagen and other suppliers report their advances in this regard.

In other news, Queretaro and Nuevo Leon reaffirm the role the automotive industry plays in their respective state economies. In the first state, Governor Francisco Domínguez highlighted the progress made by Queretaro's automotive industry during his six years in office. Meanwhile, Nuevo Leon elected Governor, Samuel García, built bridges with Texas officials to strengthen the industry in the state.

Other highlights of the week include INFINITI Mexico's new director-general, Maserati Mexico's perspective on recovery of the luxury vehicle market and the latest innovations by Volkswagen and Ford.

Ready? This is the week in automotive!

Unionization In the Automotive Sector Grabs the Spotlight

Companies in the automotive sector continue to adapt to the new labor standards set by the recent reforms to the Mexican labor law particularly the one that protects union rights for workers. Union leaders, workers and companies are legitimizing their unions with the workers' vote, but it is not as easy as it sounds.

Volkswagen, Workers Union Reach Agreement

In this year’s salary revision, Volkswagen de México and the Independent Union of Volkswagen Automotive Industry Workers (SITIAVW) agreed to a 5.5 percent salary increase beginning this Wednesday, the German automaker informed.

Automotive Industry Essential to Queretaro: Governor

Queretaro attracted 207 new projects in the last six years, representing a total investment of US$4.4 billion and over 53,000 new jobs, said Governor Francisco Domínguez. The automotive industry played a crucial role, he added, representing over 36 percent of the total investments in the state.

Nuevo Leon’s Elected Governor to Focus on Industry Development

Samuel García, incoming Governor of Nuevo Leon – one of Mexico's most important industrial states –announced a series of ambitious plans to foster the state's economic development through infrastructure and FDI.

INFINITI México Has New Managing Director

INFINITI announced its new Managing Director for Mexico, Latin American and Israel, starting on October 1: Ricardo Rodríguez. Phillip Heldt, who served as head of the brand for over seven years, will take a new position to be disclosed shortly by INFINITI.

Luxury Cars Sales Stagnant in Mexico: Maserati

Luxury cars sales, as well as light-vehicle sales, are stagnant in Mexico, according to David Zambrano, Operations Manager of Italian automaker Maserati. Despite this crisis and the supplies shortage, Zambrano said that both his company and the entire market will recover in 2H2021.

Mazda, Assurant Mexico Introduce Spare Part Insurance

Assurant Mexico and Mazda México introduced a new insurance policy to cover the robbery of spare parts in used vehicles. "With this new insurance customers of the brand may protect auto parts such as car plugs, bumper, lights, cameras, tires, etc. This shows the commitment to protect what they care the most, for our partners and their customers. Congratulations Mazda for this excellent initiative," wrote Felipe Sánchez, President and CEO of Assurant Mexico.

Volkswagen Aims to Boost Productivity with AI, Robotics

German automaker Volkswagen announced that it will launch a digital transformation in its manufacturing base in the US and Mexico, aiming to get to 2025 with a 30 percent increase in productivity.

Ford to Scale Up Autonomous Vehicles by the End of 2021

Ford Motor Company, Argo AI and Lyft are joining forces to scale up autonomous ride hailing services by the end of 2021. “These three companies share a belief that autonomous vehicles will be a key enabler for a cleaner, safer and more efficient urban mobility landscape," said Scott Griffith, CEO of Ford Autonomous Vehicles & Mobility Businesses.

BCG Names Most Innovative Automotive Companies

Tesla, Siemens, Toyota, Bosch, Hyundai and Mitsubishi are the only automotive-related companies in Boston Consulting Group’s “Most Innovative Companies of 2021” review. The consulting firm’s innovation-to-impact (i2i) approach measures the readiness gap for innovation across different companies.

Photo by:   MBN
Alejandro Enríquez Alejandro Enríquez Journalist and Industry Analyst