Mexican parts makers could take three years to retuen to pre-crisis production levels, the National Autoparts Industry, or INA, trade group has said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Exports and production in the country fell 40% between January and July.
INA economic research head Sophie Pons said Mexican parts production could fall 30% this year in a sector that generated US$58bn in 2008.
“We see a recovery to 2008 levels between 2011 and 2012,” Pons told Reuters in an interview. “We can’t be optimistic until we see a recovery in US purchasing power,” she added.
About 70% of cars produced in Mexico are shipped to the US market which is suffering one of its worst downturns since World War Two.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
