The automotive sector at risk

Nobody knew and nobody knows, but in January there will be changes for the automotive sector. Good, bad, viable. The reality is that nothing is even seen, and, above all, the strategy to follow is not clear. More when it comes to regularizing the illegal, smuggling and chocolate.

We go in parts. It turns out that in January 2022 there will be a decree for the transport sector to comply with new rules, according to this, to regulate it and eliminate the illegal market, which is estimated to range in one million vehicles.

This decree, it is said, also has the objective of establishing regulation for imported cars, those that still do not have all the documentation, that is, for the so-called chocolates. In short, legalize smuggling or eliminate it?

The truth is that this decree no one knows yet, the sector has not been considered or consulted. And the Ministry of Economy, led by Tatiana Clouthier, has not ruled on the matter.

The union is completely ignorant, as they assure us that nobody knows anything.

And although there is openness from both the Ministry of the Economy and the Interior, the reality is that there is nothing firm and no details are given of how the guidelines will be sold.

But it is said that it would be the state authorities who would be regulating the union, which is not the same as the federal ones, and if it is considered that the vehicle’s history would not be being reviewed, then the reports of theft, accident and other irregularities could be a major ballast.

Hence, for leaders who had been in the union for 11 years, it was better to say thank you. That is why the resignation of Guillermo Prieto to the presidency of the Mexican Association of Automotive Distributors, who, although it is true had already spent years as head of the association, the reality is that he did a great job together with the Federal Government , establishing strategies that allowed the union to reach sales of 1.6 million vehicles, which this year will plummet by half.

So it will not be surprising that if the famous decree does not favor the formal union at all, we will see wholesale demands. I’m talking about 2,500 distributors, 44 brands and more than 2 million jobs throughout the production chain.

Although the union is an ally of the United States and Canada and will benefit from its development, the reality is that, if Mexico does not put the batteries in the chip supply chain, it will fall far behind in the footsteps of its commercial partners.

Because we will see a great shortage of cars despite the trigger that could occur in 2022, given the lack of auto parts and technology, as well as labor.

The future looks very complicated because there are no products, the sector is compressed and there is nothing to sell. The issue has to be addressed as soon as possible and resolved in a few months, otherwise we will see a crisis in a key union in the development of any country.

Grief

I deeply regret the death of Miguel Gómez Mont, a great human being, businessman, civil servant and visionary. Former founding partner of Casas GEO and former director of Fonatur, whom I had the honor of meeting as a friend. Rest in peace. Thank you and goodbye friend.

Marielena Vega

Conductor

Health, money and business

Co-founder partner, and host of the radio program Salud, Dinero y amor. Finance, business, economy and wellness program.



Reference-www.eleconomista.com.mx

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