Automotive strike in the US generates work stoppages in auto parts in Mexico

Friday, 06 October 2023 00:42:03 (GMT+3)   |   San Diego
       

The strike of the United Auto Workers in three plants of the assembly companies General Motors, Ford and Stellantis in the United States has already registered the first work stoppages in the largest auto parts producing economy in Mexico, in the northern state of Coahuila, according to local press reports.

“Two (auto parts) companies in Coahuila are on strike due to a strike,” is the headline of the newspaper El Diario de Coahuila.

The information that he cites as a source of information from the head of the state Ministry of Labor, Nazira Zogbi Castro, was also published by newspapers such as Vanguardia, El Sol de la Laguna, El Heraldo de Saltillo, among others.

Data from the business chamber Industria Nacional de Autopartes (INA) place Coahuila as the largest producer of auto parts in Mexico with 15.4 percent 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.

The production of auto parts in Mexico, in June alone, totaled $10.57 billion, of which around 86 percent is exported.

According to the local press, one of the plants on partial strike is the Mexican unit of the Japanese Takata, Jaropamex, which employs 1,200 workers. The other, with a thousand workers, the name was not revealed, but only on strike in three production lines, according to Zogbi Castro's report.

The strike began 21 days ago, on September 15, and according to sector experts, the daily negative impact would be $12 million. So far, the negative effect in Mexico would be $252 million, according to the calculations commented to SteelOrbis by Alberto Bustamante, Former President and Former Director General of the INA

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.

 


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