Our Main Services

  • Accounting & Taxes

  • We strive to comply with accounting principles and tax requirements for your company. The information is always on time and available online.

  • Import & Export

  • Our management team has a significant knowledge of Mexican Trade Compliance and Foreign trade requirements.
    .

  • Human Resources

  • We are a talent-focused organization that recruits passionate and thoughtful staff and then invests significantly in developing them for your organization.

  • Environmental Health & Safety

  • We enable organizations to outsource all or part of this important aspect of their business to our fully qualified health and safety representatives.

Mexico green lights auto industry restart, heeding U.S. calls

MEXICO CITY (Reuters) - Mexico will begin opening some automotive factories from May 18 under a plan unveiled on Wednesday that loosens coronavirus restrictions and paves the way for U.S. car giants to ramp up output dependent on parts made south of the border.

In a presentation, the government said as of Monday, mining, construction and manufacturing of transport equipment will be considered essential activities and that companies must implement strict protocols to protect their workers.

“We now have the light which tells us we’re going to get out of the tunnel,” President Andres Manuel Lopez Obrador said alongside top officials at a news conference in which the government set out its plans.

Lopez Obrador stressed that adoption of the measures would be voluntary. Some states may move faster than others during the reboot of the auto sector, though industry leaders are eager for supply chains to reconnect as seamlessly as possible.

A government memo dated Wednesday, based on media reports, showed that state governments diverged considerably in their guidance on how quickly they would restart activities.

The United States and auto companies have pressed Mexico to reopen factories serving the U.S. market, despite the intensifying challenge posed by the pandemic. Mexico on Tuesday registered 353 coronavirus deaths, its most lethal day yet.

Mexico sends 80% of its exports to the United States and became its biggest trade partner last year, with bilateral commerce worth over $600 billion. Mexican auto output all but evaporated in April, plunging by 99%.

From Monday, Mexico will also allow municipalities without reported coronavirus cases which lie adjacent to others with no infections to begin lifting coronavirus curbs.

The government said some 269 municipalities, or more than 10% of the national total, currently fall into that category.

Other more general economic and social activities will restart step by step under a “traffic light” system to determine which areas of the country are at lower risk of outbreaks of infection, Economy Minister Graciela Marquez said.

The reopening of North America’s automotive industry is likely to be gradual, said Phil Annese, a senior director at Pilot Freight Services, which moves car parts for Ford (F.N), GM (GM.N) and FCA (FCHA.MI) from Mexico to U.S. factories.

The assembly plants “are going to start out at a 25% to 40% production rate, they’re going to go as slow as they can to not create snags in the supply chain,” Annese said.

“If they get that supply chain stuck, that’s more trouble than anything they can have. Starting and stopping lines, that’s where the cost comes in,” he added.

Mexico has been studying other countries emerging from lockdowns and believes highly mechanized factories offer better conditions to control the risk of contagion, officials say.

Lopez Obrador is trying to strike a balance between limiting economic damage and saving lives, but some lawmakers worry Mexico may be moving too fast.

They include Benjamin Carrera, a state-level lawmaker from Lopez Obrador’s ruling MORENA party in Chihuahua, home to the northern industrial hub of Ciudad Juarez.

He has urged authorities not to allow manufacturers to open before June 1 in Ciudad Juarez, a border city where many maquiladoras, including auto parts makers, are located and 146 people have died of the coronavirus, including factory workers.

“Juarez couldn’t survive without the factories. But right now, the life of a worker is much more important than a job,” he said. “A job can be recovered. People’s lives can no longer be.”

The Client List

  • 1

About Mexcentrix

We assist companies with their manufacturing operations in Mexico.

Keep in Touch

 

  This email address is being protected from spambots. You need JavaScript enabled to view it.
  +1 (877) 212-5593
  Himalaya 210 San Luis Potosi

 

Get Map

Mexcentrix

Print

Latest News

10
Aug2020

SAT cobra un retroactivo de...

Colegio de Contadores considera que la medida es meramente recaudatoria e ilegal; benéfico que Prodecon fije su...

09
Jun2020

Stumbling angel? Mexico risks losing...

MEXICO CITY (Reuters) - Mexico is facing its deepest recession in decades and prominent investors believe it...

28
May2020

CFE chief vows to end...

The director of the Federal Electricity Commission (CFE) has vowed to put an end to “simulation and...

15
May2020

Mexico green lights auto industry...

MEXICO CITY (Reuters) - Mexico will begin opening some automotive factories from May 18 under a plan...

06
May2020

Some Mexico central bank officials...

MEXICO CITY (Reuters) - Mexico's central bank is likely to cut interest rates further, with some members...

04
May2020

Mexico's economy plunges deeper into...

MEXICO CITY (AP) — Mexico’s economic activity dropped 1.6% in the first quarter compared to the final...

22
Apr2020

'A failure foretold': Mexican president's...

MEXICO CITY (Reuters) - Mexican business leaders fed up with President Andres Manuel Lopez Obrador are beginning...

03
Apr2020

Mexican Economy May Contract by...

MEXICO CITY — Mexico's Treasury predicted Thursday that the country's economy will contract by as much as...

29
Mar2020

Mexico’s President Pushes Relations with...

Mexican President Andres Manuel Lopez Obrador’s relationship with the country’s business elite is rapidly deteriorating over the...

21
Mar2020

U.S., Mexico banning ‘nonessential’ crossings...

WASHINGTON – The U.S. and Mexico were moving to restrict “nonessential travel” across the border just after...

20
Mar2020

Ford, GM, Fiat Chrysler agree...

Ford Motor Co., General Motors Corp and Fiat Chrysler have all decided to halt production as the...

09
Mar2020

Mexican Private Sector Pitches $92...

MEXICO CITY — Mexico's private sector has drawn up a broad package of proposed energy investments for...

04
Mar2020

Mexico FX to stay on...

Mexico's peso is seen vulnerable to further slumps with the U.S. election campaign in focus after ending...

17
Feb2020

Spanish court keeps former Mexican...

MADRID, Spain (AP) — A Spanish court ruled Thursday that a former head of Mexico's state oil...

15
Jan2020

Mexican bank Banorte inks deal...

MEXICO CITY (Reuters) - Mexican bank Grupo Financiero Banorte said on Sunday it had signed an agreement...

09
Jan2020

Mexican auto exports post first...

MEXICO CITY (Reuters) - Mexican auto exports posted their first decline in a decade last year, while...

18
Dec2019

Mexico Raises Minimum Wage by...

MEXICO CITY — Mexico raised its national minimum wage 20% Monday, but it still doesn't amount to...

12
Dec2019

Mexican businesses focus on labor...

MEXICO CITY/WASHINGTON (Reuters) - Mexican business leaders on Wednesday began poring over texts of a new stricter...

27
Nov2019

Mexico to spend $44 billion...

MEXICO CITY (Reuters) - Mexico's government on Tuesday announced the first phase of an ambitious infrastructure plan...

19
Nov2019

Jorge Vergara, billionaire owner of...

Jorge Vergara, the billionaire owner of the Mexican soccer club Chivas, died Friday after suffering a heart...

«
»