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INA: Auto Parts Industry Benefits from Preliminary U.S. Settlement

Mexico. Last week, in a very significant step towards ending the strike in the United States, the UAW reached a preliminary agreement with the Ford Motor Company that allowed all Ford Motor Company workers to return to productive work.

While the agreement will have to be ratified in an open vote by union members, it is an unequivocal sign of the interest in reaching a mutually satisfactory solution.

In the case of Mexico, six weeks after the start of the strike, the National Auto Parts Industry (INA) estimated a cumulative reduction in the production of auto parts of 780 million dollars, "which is equivalent to 1% of the total exports made by the auto parts industry to the United States in 2022," said its general director Armando Cortés Galicia.

Currently, the plants in unemployment are reduced to five belonging to Stellantis and General Motors (GM) and, likewise, the suspension of activities in 38 distribution centers of parts of these two companies continues. The plants referred to above are the following:

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Stellantis (Toledo, Ohio)
GM (Wentzville, Missouri)
GM (Lansing Delta Township, Michigan)
Stellantis (Sterling Heights, Michigan)
GM (Arlington, Texas)

The resumption of activities at the three Ford plants originally on strike in the United States will have a positive effect on the national supply chain.

It should be noted that these three plants accounted for a loss of US$434 million from September 15 to October 25, equivalent to 58% of the total impact of the strike in the same period.


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