Mexico says auto factories to reopen with virus safeguards

Image
AP Mexico City
Last Updated : Apr 25 2020 | 9:49 AM IST

The Mexican government said Friday it plans to reopen automotive factories in conjunction with the United States and Canada.

The Foreign Relations Department said in a statement that the details of the plan would be released in the coming days. The department said health safeguards would be in place to prevent the spread of the new coronavirus, which caused Mexico to order the closure of non-essential plants several weeks ago.

The Mexican government will be emphatic about health protection and will ensure that the reopening will be orderly, gradual and cautious, the statement said.

The announcement came three days after the U.S. government launched a campaign to get Mexico to reopen plants, suggesting the supply chain of the North American free trade zone could be permanently affected if they didn't resume production.

Mexico's border assembly plants are key to the U.S. supply chain, including defense contractors, and more employees at the facilities have staged walkouts and protests because of fears over the coronavirus.

Christopher Landau, the U.S. ambassador to Mexico, launched a Twitter campaign Tuesday urging efforts to keep supply chains intact.

He expressed concern about virus lockdowns damaging the flow of parts and goods that feed businesses in the United States, Mexico and Canada and warned that if we do not coordinate our response, these chains can evaporate.

There are risks everywhere, but we don't all stay at home for fear we are going to get in a car accident, Landau wrote.

The destruction of the economy is also a health threat. Ellen Lord, U.S. undersecretary of defense for acquisition and sustainment, had voiced similar concerns Monday in Washington.

We are seeing impacts on the industrial base by several pockets of closure internationally. Particularly of note is Mexico, where we have a group of companies that are impacting many of our major primes, she said.

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Apr 25 2020 | 9:48 AM IST

Next Story