USMCA Puts Auto Part Market in the Spotlight

The automotive industry is recovering from the COVID-19 pandemic havoc. China’s automotive production is returning to normal, which is expected to benefit the global manufacturing industry. Meanwhile, the USMCA has promoted the growth of the local industry and is being used to promote good labor practices in Mexico.

Despite the continued work toward a full electrification, Toyota claims that a fast transition to EV could increase pollution.  

Start your engines! This is the Week in Automotive

Nearshoring Boosts Mexico’s Auto Part Market

The auto parts industry is benefitting from the nearshoring boom that followed the USMCA treaty. Despite the materials and semiconductors shortages, Mexico produced more auto parts in 2021 than in 2020 amid the relocation of manufacturing companies to the country. This has positively impacted other industries, such as rubber production. Learn more about nearshoring here.

Stellantis Invests US$35 million in EV, Autonomous Driving R&D

Stellantis will invest US$35 million in two of its testing facilities to progress in autonomous driving technology and improve EV performance. “We are intensely working with the other global functions to energize the core of our technological transformation. It gives us a comprehensive view of the challenges and enables us to consider and refine a full menu of mobility solutions that will put us in the front row of the race to innovate and improve,” said Harald Wester, Chief Engineering Officer, Stellantis. Read the full story at MBN.

China’s Automotive Production Returns to Normal

After the COVID-19 lockdowns in China hampered manufacturing sectors across the world, China’s automotive industry is regaining its production level. The resumed vehicle production, the financial stimuli from the government and the pent-up demand from earlier this year have increased sales expectations for the upcoming months. This represents good news to Mexico as its supply chains were also affected by the rising costs of transportation and raw materials. Read the full article here.

VU Manufacturing Labor Complaint Adds to Four Others Under USMCA

Members of La Liga presented a labor complaint under USMCA’s Rapid Response Mechanism (RRM) against VU Manufacturing because the company arguably seeks to impose a business-friendly union to support its interests in the auto parts plant in Piedras Negras, Coahuila. “We are in times of reforms in favor of labor rights, not of continuing to repeat old practices,” said Julia Quiñónez, Director, CFO and Advisor, La Liga. This is now the fourth complaint presented to the RRM regarding labor rights in slightly over a year. Learn more about it here.

For Smooth Electromobility Transition, Collaboration is Necessary

IHS Markit forecasts that by 2030, electric and hybrid vehicles will achieve an 8-10 percent penetration in Mexico. To achieve this, all automakers are working toward the achievement of zero carbon emissions. Hyundai expects to reach the latter by 2045. “Hyundai aims to bring several hybrid models to Mexico, to be followed by electric models,” said Edgar Carranza, COO, Hyundai Mexico to MBN. Read the full interview here.

Toyota Questions Speed of EV Transition

European pension funds recently criticized Toyota’s slow approach to the transition to electric vehicles. “Hybrids still make sense in markets where infrastructure is not ready to support a faster move to EVs,” Toyota told Automotive News Europe. Toyota’s approach toward electrification is alarming shareholders. Read the full story.

GBM, AMT Sign Agreement to Collaborate in FITMA

Gardner Business Media (GBM) and the Association for Manufacturing Technology (AMT) committed to support the production, organization and promotion of the International Technology and Manufacturing Fair (FITMA). “The manufacturing community in Latin America needs an event like FITMA that can showcase metalworking technologies and serve as a major opportunity for networking,” said Carlos Mortera, International Director for Latin America, AMIT, as reported by MBN.