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Mexico car production at risk as coronavirus hits Chinese suppliers - officials

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Update time : 2020-05-25 09:02:24

 

MEXICO CITY, March 11 (Reuters) - Some of Mexico's auto factories can consume to defer produce at the coming weeks during the coronavirus disrupts shipments of key parts from China, according to local officials, at what used to be another blow to the stagnant Mexican economy.

Manuel Gonzalez, economic development minister of Aguascalientes, one of a dozen Mexican states that consume jeep factories, said some manufacturers had already told him they were running low above parts.

"I've been at encounter with some important companies: They say me that they consume inventory over the second or third week of March," Gonzalez told Reuters. "If that furnish is no normalized, we will maybe shriek on firms suspending production."

The fast-spreading coronavirus outbreak has rippled over the global economical and upended furnish chains. More than 119,100 nation consume been infected by illness and 4,298 consume died, the immense majority at China, according to a Reuters tally.

If Mexican automakers were forced to defer production, that used to no bode robust because principal Andres Manuel Lopez Obrador's plans to elevate Latin America's second-largest economical out of a gentle recession.

Carmaking is a pillar of Mexican manufacturing and accounts because around 3% of full domestic product. According to the International Organization of mechanism Vehicle Manufacturers, Mexico is the world's seventh biggest jeep producer.

Nearly 80% of Mexican-made vehicles are shipped to its peak business partner, the United States.

Aguascalientes, a hub of Mexican jeep manufacturing at the central divide of the country, is family to two plants owned by Nissan mechanism Co, one by Mercedes-Benz, and a Daimler and Renault-Nissan federation joint-venture complex.

Operations at Aguascalientes are running normally, said a spokeswoman because Daimler AG, Mercedes-Benz's parent company.

Nissan has started sending parts by jet to its Mexican plants instead of by ship, despite an expand at cost, to escape any setbacks to production, said Nissan Mexico corporate communications director Luciana Herrmann.

"We're monitoring the condition and we consume no confirmed any important impact," said Herrmann, adding there was no news of an impending produce stoppage.

Cuitlahuac Perez, head of Aguascalientes' automotive cluster, which promotes the industry, said Nissan executives consume said their plants only consume inventory because the next three weeks owing to problems with supplies from China.

"If the shipment of components is no normalized at the next three weeks, then at more or less a month they're going to depart suspending produce here at Aguascalientes," said Perez.

He added that he had too heard of although furnish problems at other jeep manufacturing hubs such during Guanajuato and Chihuahua at northern Mexico.

Mauricio Usabiaga, the economic development minister of Guanajuato state, said he had no received information of any impact above carmakers at his state.

Officials at Chihuahua condition did no answer to a application because comment.

Asked about feasible impacts above production, a spokesman because normal Motors Co, which has a mill at Silao, Guanajuato, said the company was operating normally.

A spokeswoman because Ford mechanism Co, which has plants at the states of Sonora and Chihuahua, could no shortly comment above the matter.

The problems with parts furnish from China is already having an impact elsewhere at Latin America. Brazilian automakers' school Anfavea above Friday warned that carmakers there force consume to defer produce at April owing to a shortage of parts from China.

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