General Motors México announced the suspension of its production and assembly factories in Coahuila, Guanajuato, San Luis Potosí and Toluca.
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The spread of the coronavirus in Mexico has put a brake on the automotive industry, one of the most important economic activities in the country, with more than 800,000 direct jobs generated each year in the manufacture of vehicles and auto parts.
While Mexico is on the verge of phase two of the pandemic, with 316 confirmed import cases and three deaths so far, 10 of the 12 plants that produce vehicles in the country they have announced the suspension of operations, as reported by El Economista.
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The Fiat Chrysler Automobiles (FCA) group, with seven plants in Mexico, ad the suspension of operations since last March 19 to “protect” employees and their families. The measure was announced by the president of the firm, Brunno Cattori, following up on what was agreed with the union in the USA. and Canada.
Likewise, General Motors México announced the suspension of its production and assembly plants in Coahuila, Guanajuato, San Luis Potosí and Toluca.
“The company is conducting a systematic and orderly suspension of its manufacturing operations in North America due to market conditions and to continue protecting people in an effort to combat the risks of contagion from the coronavirus, “GM Mexico said in a statement.
In order to combat the risks of COVID-19 contagion, GM de México confirms the dates of temporary suspension of operations for its manufacturing complexes in a systematic and orderly manner. Find out the details here: https://t.co/86RcFy2EWI
– General Motors de México (@GeneralMotorsMx) March 21, 2020
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For its part, the factory Cooperation Manufacturing Plant Aguascalientes (Compas), Which produces the Infiniti model for Nissan and the GLB of Mercedes-Benz, will suspend its operations from March 25 to April 13 due to the global impact of the coronavirus and in the care of its employees, according to the Reuters agency.
Honda adjusts production
Last week, Honda announced that it will adjust production at all of its auto plants in the US, Canada and Mexico, due to an “expected decline in market demand related to the economic impact of the pandemic.”
With this measure, which began on the 23rd and initially extended until March 31, the Japanese company will reduce the production of 40,000 vehicles in these six days, as reported in a press release.
Implications
The halt to car production could have important repercussions in the Mexican economy, which in 2019 contracted 0.1% and that in the beginning of 2020 has faced severe difficulties in the face of the fall of international markets Y the collapse in oil prices.
Mexico is the world’s fourth largest exporter of products from the automotive industry, according to the National Institute of Statistics and Geography (Inegi). The sector as a whole contributed in 2017 3.7 of the National Gross Domestic Product (GDP).
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