The United Auto Workers strike in six plants of the General Motors, Ford and Stellantis assembly companies in the United States has already impacted the production of Mexican auto parts with $600 million in five weeks, according to information from the business chamber Industria Nacional de Autopartes (INA).
The INA attempted to minimize the US labor impact on Mexico, which is the largest supplier of auto parts to the US market.
The $600 million “is equivalent to approximately 0.8 percent of Mexican auto parts exports to the United States in 2022,” the INA reported in a press release.
However, according to SteelOrbis calculations with information from the INA, on average $1.22 billion I parts are exported per week. In five weeks, exports to the entire world would be $6.13 billion, so the impact of $600 million is equivalent to 9.8 percent of total exports.
The INA does not publicly break down how much it exports to the United States, so the impact could be greater.
Last week, local newspapers in Coahuila, the largest auto parts economy in Mexico, reported that the first technical stoppages were recorded in Mexico due to the workers' strike in the United States.
The INA reported that the first week of the strike, the impact in Mexico was $76 million, the second week for the same amount of $76 million, the third week it increased to $128 million, the fourth week the impact was $151 million and the fifth Week ending October 20, the impact will be $169 million.
Data from the INA place Coahuila as the largest producer of auto parts in Mexico with 15.4 percent of market share, followed by Guanajuato (13.1 percent of the total), Nuevo León (12.2 percent), Chihuahua (8.8 percent) and Querétaro (7.9 percent). Together these five states contributed 57.3 percent of the national total.
Mexico is the fourth largest producer of auto parts in the world and the main supplier of auto parts to the United States with a market share of 42.9 percent, far surpassing the second largest supplier, Canada, which contributes 10.9 percent, and China, which contributes 7.7 percent.