USMCA’s Energy Dispute Raises Concerns

Main actors have speculated about what the US and Canada’s request to discuss Mexico’s energy policy could mean to the automotive industry. INA and AMIA raised their concerns, while members of the current government administration like Tatiana Clouthier, Mexico's Minister of Economy, and Marcelo Ebrard, Mexico’s Minister of Foreign Affairs, asked for calm. 

In other news, the GM assembly plant in Silao pauses production as the company faces chip shortages despite major efforts from key actors in the sector. Meanwhile, Ford’s e-sports team seeks to improve the video game experience through the GTElite Ford GT Edition. 

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USMCA’s Energy Dispute Raises Concerns 

Discussions regarding a consultation started last week. The US and Canada seek to exchange points of view regarding Mexico’s energy policy. If no agreement is reached in a 45 days period, a dispute panel will be established that might have consequences in terms of trade. INA and AMIA expressed their concerns regarding the impact that this could have on the Mexican economy, as the automotive industry represents 3.8 percent of the country’s total GDP. Read the statements here. 

GM Pauses Production at Silao 

GM announced that due to the chip shortage, its production plant has a scheduled downtime starting on Aug. 29 through Monday, Sept. 5. The company reported “relatively stable” production at its other production plants in North America since 4Q21, all of which will continue normal operations. Check out the whole story here. 

Ford to Improve Video Game Experience

The US automaker e-sports team, Fordzilla, collaborated with Next Level Racing to enhance the user experience pointing to introduce the Ford community to the sim racing world through the GTElite Ford GT Edition Cockpit. “It is fantastic to be associated with a leader in race simulation technologies such as Next Level Racing and show how far the Fordzilla team has gone in a relatively short period of time,” said Emmanuel Lubrani, Senior Manager of Brand Communications and Content Development, Ford Europe C&PA. Learn more about it here.

US Vehicle Prices Reach Record High

Low supply and high demand of new vehicles are causing average transaction prices reaching a record average of US$46,259, according to consultancy firms J.D. Power and LMC Automotive. This despite the high-interest rates affecting the US and the approval of the Inflation Reduction Act of 2022 that seeks to tackle this effect. “In September, constraints are expected to continue with sales being hampered by available inventory. In the near term, prices and per-unit profitability will remain strong," said Thomas King, President of Data and Analytics Division, J.D. Power. Read the whole story here.