During July-September 2016, this surplus was 6.4% less than in the same period of last year, because of a reduction in vehicle assembly due to lower demand for light vehicles in the US.
For the first time in eight years, the surplus of the auto trade balance 'reversed' in a third quarter in Mexico.
Banxico's information reveals that during July-September 2016, this surplus totaled 12.662 billion dollars, 6.4 percent less than in the same period last year. This reflected a reduction in the assembly of vehicles, derived in turn from smaller demand of light cars in the United States.
"In my opinion, production has declined mainly due to the slowdown in the US market." For automakers exporting between 75 and 80 percent (of the cars they make) to the United States, it represents a readjustment in their planning, "explained Brais Álvarez Gallardo, an analyst at JD Power Mexico.
In the third quarter of 2016, 4.4 million light vehicles were sold in the neighboring country, which meant 1.3 percent less than in the same period of 2015, per WardsAuto figures.
In the accumulated January-September 2016, the automotive surplus was 36 thousand 706 million dollars, a reduction of 8.3 percent with respect to the same period of the previous year. This is the first drop for an equal period since 2009.
Eduardo Solís, president of the Mexican Automotive Industry Association (AMIA), said at a recent press conference that in September 81.1 percent of the export of light cars was destined for the United States.
"The lag of the United States' market is an adverse condition" he said.
Ford Motor Company is the most representative case. The company announced in October that it suspended its production activity for two weeks at its Sonora and State of Mexico plants in response to the stagnant full inventory due to lower sales of vehicles in the United States.
Prior to this, AMIA information reveals that the 'blue oval' firm had already reduced its production in Mexico by 9.7 percent in the first nine months of the year, in response to a 3.9 percent decrease in its sales in the United States during July-September 2016 period.
Source: elfinanciero.com.mx