SynopsisTernium Mexico, a subsidiary of Ternium based in Luxembourg, expects a minimal impact on its sales due to the strikes at General Motors, Ford, and Stellantis plants in the United States. However, experts suggest that the strikes may affect other companies in the sector, particularly those involved in auto parts production in Mexico.ArticleTernium Mexico, a subsidiary of the global steel company Ternium headquartered in Luxembourg, foresees a limited impact on its sales despite the ongoing strikes at General Motors, Ford, and Stellantis plants in the United States. This perspective was shared by César Jiménez Flores, the executive president of Ternium México, in an interview with El Norte newspaper.While Ternium Mexico remains cautiously optimistic about the situation, industry experts have noted that the strikes may have broader implications, particularly for companies involved in auto parts production in Mexico.Recent reports, including one from SteelOrbis, have highlighted a Mexican government report on coated steel, shedding light on the production allocation strategies of various steel companies. The report indicates that Ternium, Galvasid, Tyasa, and Villacero primarily supply their production to the construction and household appliances sectors. On the other hand, Tenigal (a joint venture between Ternium and Asian companies Nippon Steel Corporation), Nucor JFE Steel México, and Poseo México target the automotive industry.Alberto Bustamante, former president of Mexico's National Auto Parts Industry (INA), expressed concerns about the potential impact of the strikes on auto parts production in Mexico. According to him, the United Auto Workers (UAW) strike, which began on September 15, could result in a daily cost of $10.9 million in the first week, according to INA's official estimate.Bustamante also raised the alarm that if the strike extends to more than 150 production plants controlled by the UAW, the economic impact on Mexico could be substantial.In response to these concerns, the workers' union has made it clear that they are willing to prolong the strike if differences persist in reaching an agreement.The situation remains dynamic, and stakeholders are closely monitoring developments in the automotive sector as these strikes continue.Conclusion:While Ternium Mexico expects a limited impact on its sales due to the strikes in the United States, the broader repercussions of these strikes on the automotive industry and related sectors, especially in Mexico, are of concern. As the strike persists, it underscores the interconnectedness of the global supply chain and the potential economic consequences that ripple across borders. The willingness of the workers' union to prolong the strike adds an element of uncertainty to the situation, emphasizing the need for swift resolution to minimize disruptions in the industry.
SynopsisTernium Mexico, a subsidiary of Ternium based in Luxembourg, expects a minimal impact on its sales due to the strikes at General Motors, Ford, and Stellantis plants in the United States. However, experts suggest that the strikes may affect other companies in the sector, particularly those involved in auto parts production in Mexico.ArticleTernium Mexico, a subsidiary of the global steel company Ternium headquartered in Luxembourg, foresees a limited impact on its sales despite the ongoing strikes at General Motors, Ford, and Stellantis plants in the United States. This perspective was shared by César Jiménez Flores, the executive president of Ternium México, in an interview with El Norte newspaper.While Ternium Mexico remains cautiously optimistic about the situation, industry experts have noted that the strikes may have broader implications, particularly for companies involved in auto parts production in Mexico.Recent reports, including one from SteelOrbis, have highlighted a Mexican government report on coated steel, shedding light on the production allocation strategies of various steel companies. The report indicates that Ternium, Galvasid, Tyasa, and Villacero primarily supply their production to the construction and household appliances sectors. On the other hand, Tenigal (a joint venture between Ternium and Asian companies Nippon Steel Corporation), Nucor JFE Steel México, and Poseo México target the automotive industry.Alberto Bustamante, former president of Mexico's National Auto Parts Industry (INA), expressed concerns about the potential impact of the strikes on auto parts production in Mexico. According to him, the United Auto Workers (UAW) strike, which began on September 15, could result in a daily cost of $10.9 million in the first week, according to INA's official estimate.Bustamante also raised the alarm that if the strike extends to more than 150 production plants controlled by the UAW, the economic impact on Mexico could be substantial.In response to these concerns, the workers' union has made it clear that they are willing to prolong the strike if differences persist in reaching an agreement.The situation remains dynamic, and stakeholders are closely monitoring developments in the automotive sector as these strikes continue.Conclusion:While Ternium Mexico expects a limited impact on its sales due to the strikes in the United States, the broader repercussions of these strikes on the automotive industry and related sectors, especially in Mexico, are of concern. As the strike persists, it underscores the interconnectedness of the global supply chain and the potential economic consequences that ripple across borders. The willingness of the workers' union to prolong the strike adds an element of uncertainty to the situation, emphasizing the need for swift resolution to minimize disruptions in the industry.
