Automakers Audi and Honda have temporarily suspended production at their Mexican plants to protect employees from COVID-19.
Honda is cutting automobile production in North America by 40,000 units for six days beginning March 23 because it anticipates decreased market demand, which it attributed to the pandemic. It will resume operations at its Celaya, Mexico facilities on March 31.
Audi is halting operations at its San José Chiapa plant from March 23 to April 13 because it lacks supplies to continue producing cars. The company’s supply chain has been severely affected by the COVID-19 pandemic.
Automobile sales in Mexico during January totaled 104,832 units, which is 6pc below January 2019 sales, according to figures from Amia, the domestic automotive association.
Over the last week, market participants have told Davis Index that the Mexican automotive and steel industries will be affected due to COVID-19 pandemic.
COVID-19 has been affecting Mexican steel production all year, with crude steel outptut declining to 1.37mn mt in January from 1.63mn mt during the same month of 2019.