Wednesday, July 29, 2020

Delayed June 1 manufacturing restart will hurt automakers

Specialists considered that this will further impact the regional economy and also the confidence that the industrial industry has in the country.

The Mexican government’s decision to restart transportation equipment manufacturing and auto parts manufacturing until June 1, instead of May 18, will curb recovery plans for the North American auto industry by 2020, further impacting in the regional economy and also the confidence that industrialists have in the country, they considered specialists in the sector.

Eduardo Solís, international consultant in foreign trade and advisor to the Confederation of Industrial Chambers (Concamin), stated that this decision will affect all the years of effort made by the country in attracting investment, since by not starting the industry together with its peers United States and Canada, the companies will evaluate their continuity in Mexico. “It is very important to send the message that the homologation and synchrony in North America is fundamental with the level of integration, we are the first supplier of parts and components in the United States, this level of integration were years of effort that could be lost,” he said. The former president of the Mexican Association of the Automotive Industry (AMIA) added that companies in the United States are very concerned and ask the government for clarification. Brais Alvarez Gallardo, Automotive Account Manager of JD Power de México, pointed out that not everything is negative, as they will allow them to return on June 1 despite continuing in the coronavirus pandemic, but acknowledged that the lack of confidence in the country does affect of clarity from the beginning with the dates of the return. “First of all you have to put into perspective that it is a global issue, and everyone is standing in many industries. The brands are very active and are ready to reactivate, it is not good that we have unfulfilled promises, “he stressed. He commented that the industry was not going to return to 100 percent to produce on Monday, May 18, but that it will be a gradual reopening to have an acceptable level by June 1. The representatives of the associations that represent the automotive industry in Mexico analyze the implications of what was published on Thursday in the Official Gazette of the Federation (DOF), so they declined to give an interview.

Source: El Financiero

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