Investments in Puebla to be reactivated in six auto parts plants after tariff agreement

The Business Coordinating Council (CCE) said that the elimination of tariffs on Mexican auto parts by the United States will help Puebla so that at least six companies in the sector can reactivate investments; in addition, layoffs are avoided among the 50,000 that are generated in the state within the automotive industry.

Héctor Sánchez Morales, president of the organization, said that this agreement shows that the Mexican economy will not be affected and will benefit all sectors that are part of the industry's production chain.

However, he said that there must be serenity for the execution of short and medium term projects as in the case of the half dozen companies, since a definitive agreement “gives much more certainty to work”.

In addition, he emphasized, a climate of labor peace is generated in Puebla, because announcements of tariffs do have an impact on productivity and, consequently, on layoffs.

In this context, he said that it is a latent risk to have to lay off personnel, but even more so when the commercial environment is unfavorable for companies, especially those with constant exports.

In this way, he commented, it allows to continue exporting Mexican auto parts, which will be considered as if they were also from the United States. This, for purposes of discounts and compensations that the automotive industry will apply in the coming weeks.

Sánchez Morales considered that industries that are pillars of the economy must implement more technological resources to be more productive, which does not imply layoffs.

He made it clear that modernization should not be a reason to reduce the workforce, since they will always require more personnel for logistics and machinery handling.

“What companies should do is to train personnel in new areas that need to be more efficient in order to be competitive in a globalized environment,” he said.

Sánchez Morales said that the industrial environment is in constant evaluation and Puebla urgently needs to have companies better prepared to respond to new productivity requirements.

He mentioned that governments play a role in the economic environment, since they are the ones who must guarantee the conditions for export and import markets.