Mexican exports of light vehicles registered a year-on-year growth of 6.8% from January to October 2022, to 2,391,171 units, Inegi reported.
Automotive companies are currently operating in a period of significant macroeconomic uncertainty, including supply chain disruptions and shutdowns related to Covid-19 and rising inflationary pressures and component costs.
The companies with the highest exports from Mexico in this category were General Motors (565,543 units, +31.7% y-o-y), Nissan (331,548 vehicles, -37.3%) and Stellantis (318,087 units, -7.8 percent).
For example, auto parts company Visteon Corporation, with operations in Mexico, believes that the conflict in Ukraine and the ongoing Covid-19 related blockades in China are exacerbating component cost increases; supply chain difficulties, including the availability of natural resources used in production by its suppliers; and the volatility of its customers’ production schedules.
Although the duration and impact of the ongoing conflict is highly unpredictable, it has exacerbated the availability, and price volatility, of raw materials and components, inflationary pressures, credit markets, exchange rates and supply chain disruptions.
In addition, Visteon exposed that the governments of the United States, United Kingdom, Canada and the European Union have imposed financial and economic sanctions on certain Russian industrial sectors and parties.
These sanctions include controls on the export, re-export and in-country transfer in Russia of certain goods, supplies and technologies.
Existing or additional sanctions could adversely affect the global economy, result in litigation related to the enforcement of these sanctions or further disrupt the global supply chain.
Inflation is also currently high worldwide and may continue for an unpredictable time.
Visteon’s customers include Ford, BMW, Mazda, Volkswagen, Renault, Nissan, Daimler, General Motors, Stellantis and Jaguar/Land Rover.
Visteon’s products align with key industry trends and include digital instrument panels, displays, Android-based infotainment systems, domain controllers, advanced driver assistance systems (“ADAS”) and battery management systems.
Visteon is headquartered in Van Buren Township, Michigan, USA, and has an international network of manufacturing operations, technical centers and joint venture operations dedicated to the design, development, manufacturing and support of its product offerings and its global customers.
The company’s manufacturing and engineering footprint is primarily located in China, India, Japan, Portugal, Slovakia and Mexico.