Mexico has chosen a new president and things appear to be calm for the time being. Different banks forecasted strength regardless of the results of the election, although it will take some time before we see the actual outcome.
Besides federal elections, various states also voted for their next administration, some of them home to important automotive clusters. Although there has been caution from some companies regarding new investments, the scene is set and projects will become much clearer as we move toward December and the beginning of a new administration.
Now that the decision has been made, check out our latest analysis on what our upcoming President has in store for the automotive industry.
Still craving more? Keep straight ahead for other interesting news from last week.
Despite US President Donald Trump’s threat of slapping a 35-percent tariff on vehicle imports, General Motors announced the production of the Chevrolet Blazer at its plant in Ramos Arizpe.
Due to the EU’s response to Trump’s tariffs, Harley-Davidson made the decision to move part of its production to Europe to cater for this market and avoid added tariffs.
FCA announces an investment plan of US$3.7 billion in Latin America to increase its production to 1 million vehicles from the current 700,000 by 2022.
A Vote of No-Confidence
The American Institute for International Steel filed a lawsuit at the US Court of International Trade appealing to the unconstitutionality of Trump’s tariffs based on national security issues.
The Global Automakers association stood against Trump’s plant to implement a 25 percent tariff on vehicle imports saying this could impact not only the 14 OEMs installed in the US but also their workers.
Views of Strength
Along with federal elections, on Sunday Mexicans elected new state governments in Mexico City, Jalisco, Veracruz, Guanajuato, Puebla, Tabasco, Chiapas, Yucatan and Morelos. These states alone represent 43.7 percent of the national economy.
Still, Banxico called for stability despite the imminent elections and their potential outcome, leading to a strong week for the peso.
Citibanamex dismissed the possibility of any impact on Mexico’s macroeconomics forecasting Andrés Manuel López Obrador’s victory and a majority in Congress for his party, Morena.