• DECLINE: Mexican car exports to the US could fall up to 40% this year due to a drop in demand among US consumers amid the coronavirus shock, according to Mexican industry estimates. In 2019, Mexico exported 2.64 million cars to the US market
• SALES: “Our automotive sector [in Mexico] depends entirely on the US industry. It depends on car sales in the US”, said Manuel Montoya, head of Mexico’s auto clusters network. Total car production in Mexico amounted to 3.75 units in 2019, according to statistics agency (INEGI).
• SHUTDOWN: Currently, up to 30 auto plants across Mexico have temporarily shut down and 1,200 auto parts suppliers have also suspended operations, according to the auto parts industry association (INA). According to INEGI, around 900,000 jobs in Mexico are linked to the auto industry.
• TREATY: Having the three countries already completed the ratification of the new regional trade agreement (USMCA), the Mexican government is engaged in technical discussions with the US and Canada for a longer transition period for auto industry to comply with a tighter rule of origin.
