Mexico’s auto industry cut 24,711 jobs during April

MEXICO – In April, the automotive industry in Mexico made a record cut of an average of 823 people a day, derived from the coronavirus pandemic, since in addition to suspending operations by order of the government for just over two months – April and May – they also suffered the impact of the collapse in the demand for vehicles worldwide, amid unemployment and the fall in income, said specialists and companies in the sector.

In April alone, the auto industry cut 24,711 jobs, a 2.6% reduction in the workforce compared to a month earlier. This is the largest reduction reported by the sector for a month according to data from INEGI.

The current scenario shows that we will enter a phase of new demand until we have a massive distribution of a vaccine, “said Guido Vildozo, senior manager in analysis of light car sales in America at the IHS Markit consultancy.

In Mexico, firms such as Nissan and the auto parts company Unique Fabricating announced the cut of employees to adjust their operating costs and allocate resources to improve their financial structure and better serve their markets. In the case of Nissan, the company announced that it will lay off 200 workers at its Aguascalientes production line.

“At Nissan, stemming from changes in the global and local industry, we have had to make important decisions to ensure the sustainability of our operations in today’s environment. As a consequence, approximately 200 worker casualties will be carried out within the Aguascalientes production line, under the guidelines indicated by the Federal Labor Law,”the company said during the recent presentation of the new Sentra 2020 model.

For his part, Doug Cain, president of Unique Fabricating, said in a statement that they had to reorganize their team in Mexico to maintain profitability, which includes cutting job positions.

 “This generated an expense of US$400,000 in just two months, but will allow savings of up to US$600,000 in one year,” said Cain.

In general terms, of the total number of people laid off in April within the manufacturing industry, almost 35% correspond to vehicle manufacturers and auto parts.

MEXICO – In April, the automotive industry in Mexico made a record cut of an average of 823 people a day, derived from the coronavirus pandemic, since in addition to suspending operations by order of the government for just over two months – April and May – they also suffered the impact of the collapse in the demand for vehicles worldwide, amid unemployment and the fall in income, said specialists and companies in the sector.

In April alone, the auto industry cut 24,711 jobs, a 2.6% reduction in the workforce compared to a month earlier. This is the largest reduction reported by the sector for a month according to data from INEGI.

The current scenario shows that we will enter a phase of new demand until we have a massive distribution of a vaccine, “said Guido Vildozo, senior manager in analysis of light car sales in America at the IHS Markit consultancy.

In Mexico, firms such as Nissan and the auto parts company Unique Fabricating announced the cut of employees to adjust their operating costs and allocate resources to improve their financial structure and better serve their markets. In the case of Nissan, the company announced that it will lay off 200 workers at its Aguascalientes production line.

“At Nissan, stemming from changes in the global and local industry, we have had to make important decisions to ensure the sustainability of our operations in today’s environment. As a consequence, approximately 200 worker casualties will be carried out within the Aguascalientes production line, under the guidelines indicated by the Federal Labor Law,”the company said during the recent presentation of the new Sentra 2020 model.

For his part, Doug Cain, president of Unique Fabricating, said in a statement that they had to reorganize their team in Mexico to maintain profitability, which includes cutting job positions.

 “This generated an expense of US$400,000 in just two months, but will allow savings of up to US$600,000 in one year,” said Cain.

In general terms, of the total number of people laid off in April within the manufacturing industry, almost 35% correspond to vehicle manufacturers and auto parts.

Source: El Financiero