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!
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.
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.
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.
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.
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.
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.