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Weekly Roundups

USMCA, Toyota, Nissan Mexicana Under the Spotlight

By Antonio Gozain | Thu, 12/16/2021 - 16:42

World-leading automaker Toyota announced a US$70 billion investment in the brand’s electrification strategy, which includes US$35 billion destined exclusively for BEVs development. Meanwhile, Mexico is not ruling out the possibility of appealing to an international panel, following tax incentives proposed by the US for locally-made EVs.

 

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Startup Bets on Mexico’s Automotive Industry Digitalization

CarKer, the first startup in Mexico backed by Mobil, was launched in an effort to digitize the aftermarket with on-demand solutions by freely connecting car drivers with auto workshops to boost confidence in car-focused MSMEs and to help the local economy.

Toyota’s Raize to Arrive in Mexico

Toyota’s Raize, the Japanese automaker’s latest SUV of compact size, will arrive in the Mexican market. The SUV will not be available to US shoppers due to a stronger predicted demand in Mexico and other developing countries.

Mexico to Speak Against US EV Tax Credits: AMLO

Mexico is still evaluating the possibility of appealing to an international panel over tax incentives proposed by the neighboring country to favor US-made EVs, said President López Obrador on Tuesday. Mexico will review a range of legal actions, alleging the incentive to be “discriminatory” and contrary to USMCA.

“(The US) is violating USMCA. What they are doing is not correct and as an industry we disagree with that position. Right now, Canada is joining and we have to stop that, because then it will be a commercial war,” said to El Economista José Abugaber, President, CONCAMIN.

5G Transition to Worsen Semiconductor Shortage

While automotive manufacturers were hoping for 2022 to bring an end to the semiconductor shortage, the crisis might last longer than predicted due to increased microchip demand as the next generation of mobile networks arrives in many countries.

“We estimate that the impact of the lack of semiconductors will continue into at least 1Q22. This is subordinated to a very important issue which is the shift from 4G to 5G networks,” said Alberto Bustamante, Interim President, INA.

Nissan Mexicana to Change Production Plans Amid Shortages

Nissan Mexicana decided to move the production of Versa and V-Drive from its CIVAC Morelos plant to Aguascalientes plant 1, as part of its Nissan NEXT rationalization plan amid semiconductor shortages. While CIVAC’s line 1 will close, line 2 will “continue working at this important plant, which produces the renewed pick-ups NP300 and Frontier, exported to 20 countries,” said Nissan Mexicana.

Toyota Announced US$70 Billion Investment in Electrification

Toyota announced a US$70 billion investment to boost its electrification strategy by 2030. Half of the money will be destined to the development of BEVs. Annual sales of BEVs will reach 3.5 million units by the end of the decade, said Akio Toyoda, Executive Director, Toyota.

The data used in this article was sourced from:  
MBN, Reuters, El Economista
Photo by:   MBN
Antonio Gozain Antonio Gozain Journalist and Industry Analyst