Background on the Automotive Industry in Querétaro
Querétaro, Qro. The automotive industry in Querétaro has been facing uncertainty due to adjustments in the United States’ tariff policy and market behavior. In response, industry leaders have implemented extended payment periods as a strategic measure.
Who is Daniel Hernández Camacho?
Daniel Hernández Camacho is the director of the Automotive Cluster in Querétaro, a key organization representing the region’s automotive industry. His insights provide valuable context for understanding the current situation.
The Rationale Behind Extended Payment Periods
Hernández Camacho explains that the extended payment periods are part of a broader strategy to manage cash flow within the industry. Companies aim to finance their operations through the supply chain, and this practice is common during challenging times.
- Standard Payment Terms: Typically, businesses in the Querétaro automotive cluster operate on payment terms of 30 to 60 days. However, recent trends show an increase to 90 days as companies navigate the current uncertainties.
- Historical Context: Extended payment periods have been a common strategy during previous economic downturns, such as the COVID-19 pandemic. Companies adopt this approach with the expectation that market conditions will improve in the short term.
Impact on Small and Medium Industries (Mipymes)
Cuauhtémoc Acevedo Toledo, president of the Association of Small and Medium Industries (Amiqro) in Querétaro, highlights that the extended payment periods affect nearly all member companies due to their strong ties with the automotive parts industry.
- Cash Flow Pressure: Small and medium industries face liquidity challenges as their clients delay payments, leading to delayed receipts and, in some cases, bad debts.
- Industry Growth: The automotive industry in Querétaro experienced slower growth in the first half of 2025, as reflected in hiring decisions. However, expectations are more optimistic for the second half of the year.
Key Questions and Answers
- What is the main strategy the automotive industry is using to cope with uncertainty? Extended payment periods are a common strategy for managing cash flow and mitigating the impact of market uncertainties.
- How do small and medium industries in Querétaro get affected by extended payment periods? These companies experience pressure on their cash flow, as delayed payments from clients impact their liquidity and may result in bad debts.
- What are the expectations for the automotive industry’s growth in Querétaro? Although the first half of 2025 saw slower growth, industry leaders are more optimistic about the second half of the year.
