Niki Lauda’s death, winner of three F1 championships in the 1970s, and Dieter Zetsche’s retirement, who led Mercedes-Benz to the top spot in the luxury segment in 2016, were among the biggest international automotive news this week.
The US has finally eliminated tariffs on Mexican and Canadian steel and aluminum imports, paving the way for USMCA’s ratification, according to Jesús Seade, Undersecretary for North America at the Ministry of Foreign Affairs. Representatives of CCE are lobbying with 94 Democrat representatives to swiftly ratify this treaty. Additionally, ANPACT reported growing demand for heavy vehicles in the US has boosted Mexico’s truck and bus production to record-breaking levels in 1Q19.
Meanwhile, CANACAR reported truck robberies costed Mexico 0.5 percent of its GDP in 2018. Ford plans to lay off around 7,000 jobs worldwide as part of its adjustment strategy. In the Bajio region, FDI took a hit during 1Q19, which was the worst compared to all other regions in the country. Business leaders in Guanajuato and San Luis Potosi claimed that this drop was directly related with the policies implemented by the federal government.
Want to know more about what happened over the week? Keep straight ahead!
Farewell to Legends
In his last day in office, Dieter Zetsche, CEO of Daimler, announced a general revision of costs after moderate start-of-year results before handing over his position to Ola Kaellenius.
The Bajio Region: FDI, Sales
Drops in FDI attraction are a result the federal government’s policies, according to business leaders in Guanajuato and San Luis Potosi.
Data of the Ministry of Economy shows the Bajio region suffered the worst drop in FDI attraction in 1Q19, compared to other regions.
States in the Bajio region accounted for 8.7 percent of all hybrid and electric vehicles sold in Mexico in February 2019.
Light-vehicle sales dropped 3.5 percent in the Bajio region during 1Q19, according to AMDA.
Challenges and Opportunities for the Automotive Industry
The elimination of US tariffs on Mexican and Canadian steel and aluminum imports could speed up USMCA’s ratification, according to Jesús Seade, Undersecretary for North America at the Ministry of Foreign Affairs.
The Mexican private sector, represented by CCE, has focused its lobbying efforts in favor of USMCA on 94 democrat representatives.
According to Miguel Elizalde, Executive President of ANPACT, rising vehicle demand in the US helped Mexico produce a record-breaking number of 51,058 trucks and buses in 1Q19.
Truck robberies caused losses worth MX$92 billion (US$4.8 billion) or 0.5 percent of Mexico’s GDP in 2018, according to Enrique González of CANACAR.
Over 80 luxury and armored vehicles were auctioned last Sunday by the Mexican government. A Lamborghini Murciélago, two Porsches and two Corvettes were part of the auction.