A yellow flag appeared as the industry reported production of 2.93 million vehicles between January and September 2019. This represents a 0.8 percent decrease compared to the same period last year. This is the first time there is such a decrease in production in 10 years since the global economic crisis of 2009 when the fall was of 37.7 percent. In addition, this was the lowest production volume reported by the sector in the past three years.
Executive President of AMIA Eduardo Solís explained that this decrease is partly due to changes in production lines of some OEMs, coupled with the weakening purchasing power. “The percentage may seem small, but its economic importance transcends to its relative weight in the national GDP. The automotive industry generates a great multiplier effect on the rest of the industries, due to a large number of formal jobs, its technology transfer and investment attraction capabilities,” said Alejandro Gómez in an article for Zona Franca. According to some analysts in the sector, each job created in the automotive industry generates another five in other sectors.
Want to know more about the automotive industry? Lets run into it
- Automotive production slows down for the first time since the 2009 crisis. Between January and September 2019, 2.93 million units were produced in Mexico, which was 0.8 percent less than what was recorded in the same period last year, according to data from INEGI.
- The automotive industry runs out of workers. In Aguascalientes, there are about 1,500 jobs to be filled, said the Deputy Minister of the Automotive and Metalmechanic Industry Union, Rogelio Padilla de León. The state hosts three Nissan plants and more than 80 suppliers.
- Bloomberg listed the 20 richest people in the automotive industry. Billionaire siblings Susanne Klatten and Stefan Quandt top the ranking, owning almost half of BMW. The list also pointed out figures such as Elon Musk and Larry Ellison.