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Auto parts sector working at 30% of installed capacity
Mexico City,- Auto parts sector established in Mexicali, Hermosillo, Sonora, Monterrey, Ramos Arizpe, San Luis Potosi, El Salto, Queretaro, Puebla, Toluca and Mexico City is working at 30% of its installed capacity, according to Armando Paredes, Chairman of Mexican Businessmen Council, (Consejo Coordinador Empresarial), who said that this industrial sector is not considering technical stoppages yet.
Employment in automotive industry is mainly generated by Auto Parts Industry, with around 470,000 jobs, of which 25,000 have been lost in two months (December and January), according to Agustin Rios, Chairman of Mexican Auto Parts Industry Association, Industria Nacional de Autopartes, INA.
Therefore, for each assembly plant closed, 50 large, medium and small companies, producers of components, will close because for each piece assembled in a new car supplies and other sub-products are required which are supplied by small companies with a labor force of around 5 people, while large companies employ more than 1,500 workers due to the detailed manufacturing process required for their spare parts which they sell not only to assemblers but to spare parts wholesalers and retailers as well.
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