Automotive industry in Mexico will enter into shutdown due to coronavirus from Monday
Assemblers in the industrial zone of the state of San Luis Potosi implemented a contingency plan for the global crisis caused by the coronavirus. In such a way that the some automotive plants installed in municipalities of San Luis Potosi and Villa de Reyes are going to suspend works in a gradual and systematic way.
For example, BMW will work normally this week, but entering the National Day of Healthy Distance, will make a partial strike, where they will reduce the workforce by half. This dynamic consists of the staff being divided into two, the first half will work for a week and a half, while the other half will rest at home. At the end of this period, they will exchange posts.
This case is not endemic to Mexico, in other countries the same thing happened, since it is recorded that Ford, General Motors, Fiat Chrysler, Honda, and Toyota took preventive actions to protect their workers from COVID-19.
General Motors Co. will implement an orderly suspension of work at the factory due to current market conditions and the epidemic context. General Motors Co. will implement an orderly suspension of work in the factory due to the current market conditions and the epidemic context.
Mary Barra, GM's president and chief executive officer, stated that "GM and UAW have always put the health and safety of people entering GM plants first, and we have agreed to a systematic and orderly suspension of production to help combat COVID-19".
In Detroit, Michigan, three companies that will stop their operations will leave 150,000 employees inactive, who will receive a supplemental payment and unemployment benefits from the U.S. government.
Other factories in the same line of business, such as Ford, which have an active workers' union, are negotiating the conditions for their cessation of operations so as not to lose purchasing power in their economic remuneration.
While the Asian Honda and Toyota will take similar measures. On one hand, Honda informed that it will close for a week starting next Monday and Toyota explained that it will only close for two days (Monday and Tuesday) to do deep cleaning and will reopen Wednesday to continue with its operations.
The automotive industry in Mexico
In Mexico, the automotive sector has a high economic value, leaving about 3.6% of Gross Domestic Product (GDP) year after year. It keeps a level of competitiveness and quality comparable to China, India, South Korea or Brazil. In the plants installed in the north of the country, about 3.9 million cars are produced annually, thus placing it as the sixth-largest producer of vehicles in the world, just below Germany and above South Korea.
The states that are directly benefited by the generation of employment in this sector are Aguascalientes, Nuevo Leon, Morelos, Guanajuato, San Luis Potosi, Coahuila, Puebla, Sonora, State of Mexico, Jalisco and Baja California.
The companies installed under this heading are Hyundai Motor Company, Toyota Motor Corporation, Bayerische Motoren Werke AG (BMW), Mazda Motor Corporation, Fiat Chrysler Automobiles, Honda Motor Co. Ltd, Audi AG, Ford Motor Company, Volkswagen Aktiengesellschaft, General Motors Company and Nissan Motor Company, Limited.
The 43 plants in Mexico generate about 530,000 direct and indirect jobs, which will be affected by the COVID-19, as well as exports, which are predominantly to the United States and Canada.
Until the most recent cut made by the Ministry of Health in Mexico, the number of cases of COVID-19 is 118 and this Wednesday the first death derived from the disease was registered. Also, the federal government will implement the National Day of Healthy Distance to reduce the schedule of the coronavirus.
Top 20 best selling cars in Mexico in 2019
2019 was a difficult year for the automotive industry in Mexico as political and economic changes caused severe losses. Here are the 20 most sold cars in the country
For the automotive industry in Mexico, 2019 was difficult as political and economic changes affected and as a consequence had a 7.7 percent decrease in sales becoming the largest economic crisis after 2009.
In the ranking of the most sold brands were: Nissan, General Motors and Volkswagen, although they report lower sales than in 2018. The least sold were: Alfa Romeo, Infiniti and Fiat, and Smart.
The firms that grew were: JAC, BAIC, and Bentley, those that maintained their numbers were: Renault, Suzuki, Volvo, Peugeot, and Mitsubishi.
Here is the list of the most sold brands in Mexico:
Nissan Versa with 88,707 units sold
Chevrolet Aveo with 70,947 units
Nissan NP300 with 62,989 units
Nissan March with 49,493 units
Volkswagen Vento with 47,179 units
Chevrolet Beat Notchback with 45,399 units
KIA Rio Sedan with 26,132 units
Chevrolet Beat with 24,715 units
Nissan Sentra with 21,904
Volkswagen Jetta MK7 with 20,469 units
Honda CR-V with 19,069 units
Nissan Kicks with 17,837 units
KIA Forte Sedan with 17,712 units
Toyota Hilux with 17,654 units
Honda HR-V with 17,175 units
KIA Sportage with 15,876
Chevrolet Trax with 15,250 units
Ford Figo Sedan with 14,663 units
Mazda 3 Sedan with 14,553 units
Volkswagen Tiguan with 14,548 units