The Week in Automotive: Incoming Investment Could Offset Low ResultsBy Alejandro Enríquez | Fri, 11/08/2019 - 15:52
As November begins, results confirmed an expected, yet challenging scenario: production dropped at its greatest rate ever while car exports showed its worst performance since 1992. Moreover, car sales keep falling and AMDA foresees a 2.3 percent sales reduction for 2020. On a more positive note, INA says USMCA will bring more investment to the country.
However, companies continue to expand their operations while introducing new models. Toyota is ready for Tacoma’s production in Guanajuato increasing its production capacity by 62 percent, while Honda aims to reaffirm its place as the SUV leader in the Mexican market with its new BR-V model.
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Search of armored cars in Mercado Libre rose by 32 percent compared to 2019 due to security concerns.
GM’s strike and Ford’s equipment changes left a ‘black October’ for the automotive industry. Last month, only 252,292 units were exported, which represented a 19.5 percent decrease compared to October 2018. This was the lowest October since 2015 and the greatest contraction since 1992.
AMDA foresees a 2.3 percent sales reduction in 2020. 1.27 million units are projected to be sold next year, while 2019 will likely close with 1.3 million.
The car sales downturn sums nine months in a row. AMDA reported a 8.9 percent decrease compared to October 2018.
INA says the industry will break free of the decreasing trends in the industry as USMCA will bring more investment to the country in the auto parts segment. The association foresees 20 percent of all relocating investments in the North American market will come to Mexico.
Newcomers and Expansions
Toyota is ready for Tacoma’s production in Guanajuato. The company confirmed its new facilities in Apaseo el Grande will increase the company’s production in Mexico by 62 percent.
Honda presented its new SUV BR-V 2020 model in Mexico. In a contracting market, the company reaffirms its position as the undisputable SUV leader.
Rolls Royce presented the new Cullinan Black Badge in South Carolina to complete its most exclusive line.
Inteltráfico moves Guadalajara’s students in autonomous vehicles. This is the first project of this kind in the country.
FCA CEO expects to reach record sales of EUR€7 million (US$7.7 million) before its merging with Peugeot.
AMIA’s President suggests SAT modules should be installed for illegally imported vehicles to be legalized, as long as they are not stolen units.
The US might not impose tariffs on Japanese and European cars, says the US Secretary of Commerce, Wilbur Ross.