Renault by Dirk Gently. CC BY-NC-ND 2.0

US Tariffs on Mexican products may be cancelled for now, but Mexico’s automotive industry took some collateral damage. While ANPACT announced that the suspension of these tariffs prevented a strong hit on Mexico’s automotive exports, some investments destined for to Guanajuato Puerto Interior were put on stand-by. AMDA warned that the coming US presidential elections could also put pressure on Mexico’s industry and cause instability in the near future.

Additionally, the cancellation of a merger between FCA Group and Groupe Renault last week shook the automotive industry and prompted Renault to block changes in Nissan’s corporate government. Groupe Renault and the French government announced their openness to resume talks about a merger with FCA Group once the relationship with Nissan strengthens.

In local news, several investment projects around the country were announced. Faurecia will open new corporate offices in Puebla, Metal Technologies will open a new plant in San Luis Potosi and Magna is pondering opening an R&D center in Coahuila. There are also high expectations for BMW’s new plant in San Luis Potosi. Governor Manuel Carreras says it will make San Luis Potosi a flagship for manufacturing. The company announced that this plant will also be ready to produce EVs and hybrids depending on global demand.

The road is clear. Go ahead!

BMW 3 Series 3.0 ’13 by Falcon Photography. CC BY-SA 2.0

Old Challenges, New Difficulties

The suspension of US tariffs on Mexico-made products prevented an impact on Mexico’s automotive exports, according to ANPACT. AMDA highlighted that the US elections will be a source of pressure that could generate further instability.

US threats to impose tariffs on Mexican products forced investments in dry port Guanajuato Puerto Interior to a halt.

The State of Mexico suffered a 70 percent increase in truck robberies in the first months of 2019. The state government plans to work with Puebla, Tlaxcala and Jalisco to identify theft hot spots.

AMDA warned about civil organizations that defraud owners of used vehicles imported from the US by offering an opportunity to regularize these cars.

Mexico’s Automotive Drive

Faurecia will invest MX$400 million (US$20.9 million) to build a new office building in Puebla. These offices will help the company strengthen its position in central Mexico.

Magna is considering opening a new R&D center in Coahuila after the state government Miguel Ángel Riquelme proposed a series of incentives for this investment.

US supplier of gray and nodular iron components Metal Technologies opened a new plant at Villa de Reyes, San Luis Potosi.

ABT Q5 S-line Quattro by kenjonbro. CC BY-NC 2.0

Audi plans to source 100 percent of the energy consumption at its San Jose Chiapa, Puebla plant from solar resources by 2020 from a current 50 percent standpoint.

The state government of Jalisco signed an agreement with representatives of Bavaria to increase commercial and technological ties between both regions.

According to Manuel Carreras, governor of the state of San Luis Potosi, BMW’s new assembly plant will be a flagship for manufacturing. The facility will be able to produce electric and hybrid vehicles depending on global demand.

Mergers, Partnerships & Recalls

Groupe Renault will block changes in Nissan’s corporate government as the French company would be underrepresented in the new structure.

Renault and the French government are open to partner with FCA Group when the relationship between Renault and Nissan strengthens.

FCA Group and Aurora Innovation have partnered to develop and implement a fleet of self-driving, commercial vehicles by integrating Aurora’s self-driving platform into FCA Group’s cars.

Ford recalled more than 1.2 million Explorer SUVs due to problems with control software for rear suspension and transmission.

Audi will recall 540 e-Tron electric SUVs in the US as a consequence of a potential fire hazard. Faulty wiring could leak humidity into E-Tron’s battery cell and cause a fire.

Don’t forget to follow us on twitter at @mexautomotive and @mexautomotriz for the latest industry news.

 

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