Auto parts industry calls for reopening by production chains
The auto parts industry asked the Mexican government that the economic reopening under Covid-19 be through production chains and not geographically, in the case of its sector.
Óscar Albín, executive president of the National Auto Parts Industry (INA), explained that 80% of the auto parts industry is located in 17 states of the Republic. The other 20% is distributed in non-traditionally automotive states.
Albín added that the segmentation of the country into regions, cities or municipalities for the reopening of activities would be non-operational, and would be stopping manufacturing due to the lack of an A or B component, in some plant in the United States.
Among the main companies that produce auto parts in Mexico are: APTIV, Yazaki, Bocar Group, GIS, Nemak, Hitachi, Johnson Controls, Federal Mogul, Forza Global Solutions, Magna, Industrias Cazel, Mikel´s, Meritor, Metalsa, PPG, Rassini , SAG, Bosch, Condumex, Sisamex, Visteon and Vitro.
Auto parts and economy
The global auto industry is cyclical, with the potential for regional differences in the time of expansion and contraction of business cycles.
A worsening of economic, political or other conditions in North America, Europe or China, even as a result of the Covid-19 (Coronavirus) pandemic, is likely to result in lower consumer confidence, which generally results in lower levels of vehicle sales and production.
Mexico produced auto parts worth $ 99 billion in 2019, according to the INA. The country manufactures much of the supplies, parts and components, from engines, electrical parts and transmissions, to clutches, seat covers and carpets.
The Mexican auto industry contributes around 18.5% of manufacturing Gross Domestic Product (GDP) and the size of the local market for the sector is 70.8 billion dollars.
