Show Your Papers: Mexican Auto Factories Allowed to Restart With Proper Documents

Mexico spent plenty of time discussing the phased reopening of automotive plants last week. The presumption was that the nation would have to establish guidelines for industrial work zones that would allow some to resume production after May 18th, with timing coinciding with U.S. facilities that will be in desperate need of parts and vehicles. However, last minute changes left everyone wildly confused.

On Thursday, the Mexican government said the industrial sector wouldn’t be eligible for reopening until June 1st. The following day, it explained that the date didn’t actually mean much for automotive outfits, adding that companies could reopen at any time if they verified an adherence to new safety protocols. Thanks to another announcement over the weekend, most of the residual confusion has subsidized. Mexican facilities can reopen, provided they have the correct paperwork on file.

Rather than running with the phased reopening that would have concluded at the start of June, Mexico is simply asking that factories submit a coronavirus safety plan so it can be certified by the government. According to Automotive News, the strategy is designed so that manufacturers can see a quick turnaround with the paperwork and get supply chains up and running ⁠— a matter of great interest to U.S. automakers who do a lot of cross-border businesses.

“If an auto company wants to open, they are going fill out a questionnaire, they are going to answer about 70 questions and they are going to say they will comply,” Mexican President Andrés Manuel López Obrador explained. “We are asking for them to do the same that they are doing in Germany, in the United States, in Japan, taking care of their employees,” he said. “To the degree that they have their protocols in place, they can start opening today.”

Considering that international automakers can submit the same plans established for their home countries, and that Mexico doesn’t plan on forcing on-site inspections for certification (random checks may be done later), this means many automakers can probably get up and running in a couple of days.

From Automotive News:

The relatively rapid process replaces one by the government last week that would have designated May 18-June 1 as a period for factory preparations, but not production. That would have been bad news for U.S. automakers such as General Motors that need Mexican production of popular models ⁠— like the Silverado pickup.

Likewise, any delays in the reopening of Mexican parts plants could cripple factories in the U.S. that have already opened and are running low on supplies. Bloomberg News reported last week that Daimler’s Mercedes-Benz plant in Alabama would be forced to close this week due to a lack of Mexican parts. Other automakers said stocks are low.

[Image: Joraca/Shutterstock]