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Mexican suppliers cut off Ford plant in the United States may stop production
Jul 11,2020 12:52CST
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The content below was translated by Tencent automatically for reference.

SMM: according to reports, on July 9, Ford said that new employee restrictions imposed by (Chihuahua) in Chihuahua, Mexico, on car plants in that state "may disrupt the supply chain." At present, American manufacturers in Mexico are still affected by the new crown blockade.

For American carmakers, neighboring Mexico is a key link in the international supply chain, and many companies are setting up factories in Mexico, where labor is cheaper. Not only does Ford have an engine plant in Chihuahua, Mexico, but a number of parts manufacturers also have factories in that state.

According to the regulations of the state government, the attendance rate of factory employees must not exceed 50%. On July 8th, Ford executives expressed concerns about the supply of parts in Chihuahua to Christopher Landau, the U.S. ambassador to Mexico. In a conversation organized by the Atlantic Council on July 9th, Landau said that if Mexico could not supply Ford with engines, Ford could be forced to shut down some US car plants from next week.

GE Haohua (Kumar Galhotra), head of Ford's US and international marketing department, said in an email statement that the company was operating only "a few suppliers" under the control of Chihuahua. "now that our plants in the United States are fully operational, the supply of those parts is not enough. We do not want to affect production next week, so we will continue to negotiate with government officials to ensure a safe and constructive resumption of current production.

Alejandra de la Vega, Chihuahua's minister of innovation and economic development, said she and Ford were in "close contact" and talked to Ford executives on the morning of July 9, but did not disclose the details of the discussion. De la Vega said Chihuahua had established a system to allow industries to gradually return to work and production from the blockade, a balance between protecting public health and restoring the economy.

It is reported that the Mexican federal government has given the green light to just-needed industries such as the auto industry, mining and construction, allowing it to start work again. However, with the rapid spread of the new crown epidemic, some states have implemented local restrictions.

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