Mexican Auto Industry to Resume Shortly After US Lifts Production Halts
Mexican President Andres Manuel Lopez Obrador stated Wednesday the domestic auto industry will resume operations shortly after the U.S. gears up from coronavirus-led shutdowns, to avoid further disruption to closely interconnected supply networks.
Most automotive factories in Mexico withdrawn operations in March to arrest the unfold of the coronavirus and in response to a supply scarcity formed by the outbreak.
Trade teams such as Mexican automotive sector association AMIA and truck manufacturing association ANPACT had called for the sector to be among those spared by a government order to suspend all economic activity not deemed essential.
Lopez Obrador stated the industry would be permitted to resume activities “three to five days” after their American counterparts resume production.
Lopez Obrador’s announcement followed a meeting with sector representatives earlier this week, along with officers from companies such as cement maker Cemex, conglomerate Grupo Alfa and glass producer Vitro.
The companies suggested that Lopez Obrador focus on decreasing uncertainty and building confidence in the financial system, based on a statement they issued Tuesday.
AMIA stated the business contributes 3.8% of Mexico’s gross domestic product (GDP) and is responsible for nearly a million jobs, while ANPACT stressed the closure of the factories puts the supply networks in Mexico as well as the U.S. at risk.