USMCA Dispute Panel Rules in Favor of Mexico, Canada

After a year-long process, the USMCA rules of origin dispute panel ruled in favor of Mexico and Canada. In other news, heavy vehicles production in Mexico reached historical highs in 2022, surpassing pre-pandemic levels by 2.4%.

In 2023, Scania plans to introduce five decarbonization products. Volkswagen, meanwhile, named new leaders and paused operations in Puebla. BMW Mexico was recognized by Top Employers and maintained its position as market leader in the premium segment.

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Workers File New Labor Complaint Against VU Manufacturing

Arguing that they are being denied their labor rights, members of the democratic union of the League of Mexican Workers, also known as La Liga, filed a fresh labor complaint against VU Manufacturing under the USMCA's Rapid Response Mechanism (RRM).

La Liga charged VU Manufacturing with inviting members of the Mexican Worker Confederation (CTM) inside the facility and assuming union representation without workers’ permission. Midway through 2022, workers at VU Manufacturing's plant in Piedras Negras, Coahuila, made their first formal complaint, alleging that the business had refused to allow them to freely form unions and engage in contract negotiations.

Read the full story here. 

Mexico, Canada Win Trade Dispute with US on Rules of Origin
A dispute panel ruled in favor of the interpretation of the Regional Value Content (RVC) held by Mexico and Canada. Both countries filed the complaint against the US’s interpretation of RVC one year ago. 

“Mexico will begin a process of dialogue and cooperation with its trade partners to keep track of the final report. Mexico reiterates its commitment to dialogue as the best tool for strengthening North American trade integration,” writes Mexico’s Ministry of Economy.

Check out the final update.
 

Heavy Vehicle Sector Reaches New Highs in 2022

Mexico's automotive industry reached historical levels of heavy vehicle production in 2022 with the assembly of 122,135 tanker trucks, a 19.6 percent increase over the previous year and 2.4 percent above pre-pandemic levels, according to the National Institute of Statistics and Geography (INEGI). The previous record was 119,450 units.

"We are in full economic recovery. Although it looked difficult, with this we guarantee that Mexico maintains its global leadership in the field of tractor-trailers, as the number one,” says Miguel Elizalde, President, National Association of Manufacturers of Buses, Trucks and Tractors (ANPACT). 

See all the details here.
 

Scania to Launch Five Decarbonization Products
The Swedish automaker set ambitious decarbonization targets for its Mexican subsidiary, such as selling only electric models by 2050. In 2023, the company will continue to innovate in fuel efficiency technologies for carriers, while working to incorporate the most environmentally friendly options in their vehicles. 

Find out all the details here. 

Volkswagen Names New Leaders, Pauses Operations in Puebla
The German automaker is changing its leadership as part of a strategy revision. The company, however, was forced to momentarily stop production in Mexico due to a shortage of raw materials. Volkswagen’s plant in Puebla will pause production on Jan. 16-20 of the Jetta, Taos, and Tiguan models due to a shortage of raw materials, according to the Independent Union of Audi Mexico Workers (SITAUDI).

Read the story here. 

BMW Mexico: Top Employer, Leader in the Premium Segment
For the second consecutive year, BMW Mexico has been recognized by Top Employers for its work in the HR department. Top Employers praised the automakers’ management, training, talent attraction, development, commitment and cohesion.

Throughout 2022, the automaker continued to dominate sales in the premium segment. Combined sales of the BMW and MINI brands amounted to 44,463 units. According to a press release from BMW, the company was the market leader in Argentina, Brazil and Mexico for premium vehicles.

Check out the article here.