The latest developments in trade policies have generated mixed opinions regarding the future of the industry, though most agree the outlook is less than optimistic. Uncertainty remains the order of the day as making forecasts becomes extremely difficult after the imposition of new tariffs and threats of more to come.
Insecurity does not help matters, either. An increase in theft rates has impacted the national and North American industry negatively but the Mexican government expects to counter the problem with new surveillance technology.
If you want to know more about how changes in demand and trade regulations will affect Mexico’s industry, take a look at our latest analysis piece.
For more on the week’s news, maintain a steady course.
An Uncertain Future
Changes in international demand have forced Ford to cut the third shift in its Hermosillo plant leading to the elimination of 2,000 jobs.
Although tariffs to steel and aluminum imports could boost national sourcing in the medium term, Manuel Montoya, Director of the Automotive Cluster of Nuevo Leon, says it is not clear what will happen in the long term.
The US’ economic politics will not affect investment or employment in Jalisco, at least in the short term, according to Alexandro Burgueño, Director of the Automotive Cluster of Jalisco.
US President Donald Trump and Japanese Prime Minister Shinzo Abe met at the White House to discuss vehicle imports and the US trade deficit with Japan. More Japanese investors will come to the US, says Trump.
Insecurity, Challenge for the Industry
Alex Theissen, President of the National Association of Private Transportation, asked the government not to overlook important topics for the industry because of political turmoil.
In light of the industry’s concerns regarding vehicle and auto part theft, the Ministry of Communications and Transport installed surveillance equipment on 2,000km of federal highways.
Tesla, Still Under Musk’s Control
Reports from the Tesla Model X crash in California raise new questions regarding readiness of autonomous technology to reach the market.
Before Tesla’s shareholder’s meeting, the company’s stock went up as investors speculated over Elon Musk’s future in the company.
In the end, Elon Musk was ratified as President of Tesla and said his goal of reaching production of 5,000 Model 3s per week were “pretty likely.”