Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Premium car manufacturer Daimler has halted production at Mercedes-Benz SUV factory in the US state of Alabama amid supply chain disruption. The plant is facing a shortage of parts which are supplied from Mexico, according to media reports.


In late April, the plant reopened after staying shut for five weeks to contain the spread of COVID-19. The facility is likely to restart again after the shortage of parts eases out. The company states it will make for the lost time by ramping up production through late June and early July. 


Most US carmakers plan to recommence production this week. Availability of parts for these producers also depend on Mexico allowing its auto sector to restart activities. Last week, the Mexican government had deemed the auto, mining and construction segments as essential. This week Mexican industries could start functioning. Specific details of health and safety requirements for resumption of production are likely to be out on Monday. 

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