Background on Key Players
The Mexican Automotive Industry Association (AMIA) and J.D Power, a renowned consulting firm, have stated that the closures of Nissan and Mercedes-Benz operations in Mexico will not impact the estimated 4 million vehicle production target for this year.
Odracir Barquera, the director of AMIA, mentioned that he is unaware of the specific parameters defining the closure of Nissan’s COMPAS plant in Aguascalientes, stating that “we’ll have to wait a bit longer for complete information.”
AMIA and J.D Power Perspectives on Industry Adjustments
In a subsequent interview at the Foro de la Asociación Mexicana de Arrendamiento Vehicular (AMAVe), Barquera explained that automakers’ strategies, possibly observable in the coming months, involve adjustments in auto manufacturing to focus on other products and target different markets.
When asked about the risk of plant closures due to tariff pressures and increased US auto manufacturing, Barquera clarified: “No, not right now. There might be changes in production lines, but things will balance out. Perhaps there will be shifts in the export destinations of US-produced and Mexico-produced vehicles targeting various markets. But there won’t be any plant closures.”
Gerardo Gómez, J.D Power’s director, emphasized Mexico’s significant role in the automotive industry, producing nearly 4 million units with an installed capacity of almost 6 million vehicles. He stated, “We are a benchmark for the automotive industry in the Americas region.” Gómez also noted that if the US aims to take over production, it would take two to three years to establish and start operating, with the T-MEC negotiation outcome still uncertain.
Key Questions and Answers
- Will the closures of Nissan and Mercedes-Benz plants affect Mexico’s vehicle production target? No, according to AMIA and J.D Power, the 4 million unit production target for this year remains unaffected.
- What adjustments are automakers making in response to tariff pressures and increased US auto manufacturing? Automakers are adjusting their production lines to focus on other products and target different markets, as stated by AMIA’s Odracir Barquera.
- Is there a risk of plant closures in Mexico due to these industry changes? Barquera clarified that there are no immediate plant closures, only adjustments in production lines.
- How significant is Mexico’s role in the automotive industry, particularly in the Americas? Mexico produces nearly 4 million units with a capacity for almost 6 million vehicles, making it a crucial player in the region, according to J.D Power’s Gerardo Gómez.
