Auto Care Association issues memo on coronavirus impact on the Mexico auto parts sector

We are receiving reports that many parts manufacturers and other groups in the supply chain in Mexico are being forced to shut down due to the fact that the decree fails to specifically cover repair facilities and their supply chain. Therefore, in many cases, state and local authorities are taking the approach that they are not considered essential.

Auto Care Association President and CEO Bill Hanvey just issued a statement on the situation in Mexico surrounding the coronavirus pandemic:
The Auto Care Association is working tirelessly to provide up-to-date information to our members on how COVID-19 impacts the auto care industry and why our supply chain should be considered “essential” and remain open for business during this pandemic, not only in the United States but in our neighboring countries. 

Below we are providing an update on Mexico’s health emergency declaration as related to essential activities and our advocacy efforts on behalf of our members to include the auto repair industry and supply chain as essential services.

So, what do we know at this point? The government of Mexico declared the national sanitary emergency and established the extraordinary actions and essential activities on Monday, March 30, 2020. Spanish-language Decree / Unofficial English translation (provided by the National Association of Manufacturers).
 
The Government declared as essential activities, among others, the following:
Those necessary for the conservation, maintenance and repair of the critical infrastructure that ensures the production and distribution of essential services, such as: potable water, electricity, gas, oil, gasoline, jet fuel, basic sanitation, public transportation, hospital infrastructure and medical, among others that could be listed in this category.
 
The decree, issued on the federal level, does not clearly exclude or include the auto repair industry and is permitting the state and local authorities to interpret what is considered an essential service. 
 
We are receiving reports that many parts manufacturers and other groups in the supply chain in Mexico are being forced to shut down due to the fact that the decree fails to specifically cover repair facilities and their supply chain. Therefore, in many cases, state and local authorities are taking the approach that they are not considered essential.

What is the Auto Care Association working on?
We have been in contact with our partner associations in Mexico, the Association of Representatives, Importers and Distributors of Spare Parts and Accessories for automobiles (ARIDRA) and the National Industry of Auto Parts (INA), to exchange timely information and support their actions before the Mexican government. Both associations are working in requesting the federal government to take action and explicitly include the repair industry and its supply chain as essential services. Additionally, we are working with Automotive Aftermarket Suppliers Association (AASA) and Motor and Equipment Manufacturers Association (MEMA) on these efforts.  
 
We are engaging with other government entities and organizations to support our efforts in Mexico: Department of Commerce, Office of Transportation and Machinery, Automotive Team, U.S. Commercial Service, Global Automotive Team and U.S. Embassy in MexicoAmerican Chamber of Commerce of MexicoEmbassy of Mexico in the United States

The U.S. Embassy in Mexico is in close communication with the Presidency, Secretariats of Health, Economy, Chambers of Commerce and the private sector to fully understand the issues at play and to advocate for dialogue and flexibility as the Mexican government determines how it defines critical industries.  For questions, please contact Aaron Lowe, senior vice president, government and regulatory affairs, at aaron.lowe@autocare.org