Light-vehicle production and exports sank to their lowest level since 2009. However, the road might be clear ahead. Read more!
Mexico’s automotive industry is braving troubled waters. August 2019 was the worst August for production and exports since 2009. Meanwhile, credit for new vehicles accumulated two years of negative growth. Alarms are blaring after China’s auto sales fell for the 14th consecutive month, while Ford’s credit rating was downgraded to junk status. Nevertheless, the auto parts industry is expected to grow 3.2 percent this year, according to INA, as credit for used cars hit a record during the first seven months of 2019.
After Frankfurt’s International Motor Show, it is clear that EVs are coming to stay. European automakers are embracing EVs as their flagship models and are even insisting on governments to promote their purchase in the European market. At Frankfurt, Chinese suppliers made some noise for electrification. The electrification trend echoes across the Pacific Ocean as Ford and GM electrify their most profitable models.
In this week’s Interview of the Week, we talked with Amelie Mossberg, Commercial Director of Motors Classifieds at Mercado Libre México, about improving user experience in car sales through e-platforms.
Ready to hit the road? Beware the bumps! Here’s your weekly news roundup!
Bumps on the road
Credit for new vehicles accumulates two years of negative growth. Automotive credit fell 10.4 percent during the first seven months of 2019 with 444,572 units, 51,347 less than in 2018, according to AMDA.
Automakers face their worst august since 2009. The number of assembled cars dropped by 10 percent and exports faced a negative 12.7 percent growth according to INEGI.
China’s auto sales to brave more bumps ahead. China’s car sales could experience negative to low growth over the next three years after sales fell for the 14th consecutive month in August.
Ford’s credit rating downgraded to junk. Moody’s cut Ford’s bonds’ score from Baa3, the lowest investment-grade rating, to Ba1, the highest rating for a junk bond.
Smooth Driving Ahead
The auto parts industry laughs in the face of danger as companies thrive amid automotive turbulence. The auto parts segment expects US$100,000 million in profit by the end of the year and US$1.7 billion in new investments to reach a 3.2 percent growth.
Credit for used cars hit record during the first seven months of 2019. From January to July, 62,467 used cars were sold through credit, according to AMDA.
Nissan begins assembly of the Versa 2020 in Aguascalientes. After a US$278 million investment, Nissan started production for the US and Canada in June. The company started producing for the domestic market in August and will begin assembly for 88 destinations in the upcoming days.
FCA promotes certification among its dealerships, as part of its strategy to improve customer experience amid low car sales.
Mitsubishi boost pickup sales. From January to August 2019, the company’s sales grew 20.3 percent, mainly due to its pickup and SUV lineup.
The Electric Revolution
Ford and GM are remembering who they are as they rev up electric pickup trucks to face Tesla head on. Both companies are racing to design radical new takes on their most profitable models, replacing fuel-powered engines with batteries.
European automakers tell governments they must help to sell electric cars. OEMs are insisting governments should help by building charging points and providing subsidies to help the industry in meeting stringent new emissions rules.
Chinese suppliers and manufacturers make their presence heard at the Frankfurt International Motor Show by showcasing electric technologies.
Volkswagen to sell a million EVs by 2025. The company presented its strategy to have 20 EVs models.