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Weekly Roundups

The Week in Automotive: Ramping Up Operations

By Alejandro Enríquez | Fri, 06/05/2020 - 06:00

The automotive sector has experienced luminous signs of recovery this week. From a slight jump in sales to USMCA's uniform regulations on rules of origin and procedures, new signs spell certainty, clarity and an upward cycle for the sector.

May Sales Results

INEGI presented the early figures for new car sales in May. Surprisingly and despite lockdown measures, sales jumped 17 percent compared to April. However, they remain low with only 42,028 units sold, whis is 60 percent less than in May 2019.

See the full article on May sales results here.

Expert Opinion: Guillermo Prieto

This week, the President of AMDA, Guillermo Prieto told Mexico Business News that "the recovery of the automotive market will be slow and conditioned by the decrease in income and the increase in unemployment and credit risk."

You can read his full entry here.

USMCA's Uniform Regulations

Not all procedures before USMCA's enforcement on July 1 were finished, as uniform regulations on rules of origin and related procedures were missing. The preliminary texts were published by the Mexican Ministry of Economy last Wednesday. The documents detail the three new automotive rules of origin, including the labor value content rule, which has been defined by an average base hourly salary of MX$294.22 (US$13.4) in Mexico.

You can read the full detailes on uniform regulations here.

Nissan Resumes Production

Mexico's best-seller and second-largest vehicle producer, Nissan Mexicana resumed manufacturing operations last Monday, after a two month pause due to COVID-19. It seems the industry is ramping up operations again. 

See the details of Nissan resuming operations here.

Ford and GM on George Floyd's Death

Ford and GM top executives talked about the "tragic killing" of George Floyd. The death of the 46-year-old black man in Minneapolis, Minnesota, has led to several protests and riots across the US. In their respective letter, both executives announced immediate actions within the companies to prevent any form of racism. 

You can read the full article and the full letters by Bill Ford and Mary Barra here.

International Roads

It seems that after Nissan announced the closing of its plant in Barcelona, the company is evaluating its manufacturing operations in Europe. This week, Ashwani Gupta, Nissan's Global Chief Operating Head told the BBC the company's plant in Sunderland, England, could not be sustainable given the new UK-EU trade conditions. Meanwhile, Reuters reported that Renault finally closed its €$5 billion (US$5.60 billion) state loan from the French government.

In the US, auto sales in May were better than expected, which has led Detroit automakers to rebuild their stock, Reuters reported. On the other hand, given the sharp drop in demand due to COVID-19, the car rental business seems in trouble. Just recently, giant Hertz Global declared bankruptcy.
 

The data used in this article was sourced from:  
Reuters, Mexico Business News
Photo by:   Ford
Alejandro Enríquez Alejandro Enríquez Journalist and Industry Analyst