U.S. car strike has a $412 million impact on the Mexican economy

According to Armando Cortés, general director of the National Auto Parts Industry (INA), the impact of the automotive strike in the United States on the Mexican auto parts industry is 412 million dollars after nearly four weeks of a standstill, or 0.5% of all exports in 2022.

According to Cortés, the United Auto Workers (UAW) strike has so far affected five American factories, or 15% of all Ford, General Motors, and Stellantis brands combined.

According to the INA official, the work stoppage at three sites cost the company 152 million dollars in the first two weeks.

He explained that the amount of losses calculated for the third and fourth week of the strike amounted to 260 million dollars. INA’s CEO contrasted that the Mexican auto parts industry maintains sustained historical growth in domestic production month after month.

This, he argued, boosts production with a value of more than 11 billion dollars for the coming months and mitigates the impact of the losses caused by the strike in U.S. plants.

According to the Mexican Automotive Industry Association (AMIA), the automotive industry is significant for Mexico because it accounts for over 4% of the country’s GDP and 20.5% of the manufacturing GDP, more than any other sector.