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Automotive industry faces new crisis in Mexico: Russia-Ukraine conflict leads to lack of chips

The possibility of a new crisis in the automotive industry in Mexico, not only in Coahuila, was warned by Tereso Medina Ramírez, who pointed out that he does not want this to lead to the dismissal of workers, but that there could be technical stoppages as happened during the pandemic.

The state leader of the CTM in Coahuila pointed out that the situation that could cause this new alarm in the production of automobiles and trucks is the military intervention of Russia in Ukraine, where there is one of the largest semiconductor or chip production plants, a problem that has not yet been solved, and the escalation in the price of steel.

Likewise, he mentioned that the cost of automobiles will increase and that the automakers will stop producing basic vehicles, of little more than 200 thousand pesos, because they will give priority to other segments.

On the subject, he added that "now there is great concern in the automotive sector because there will be a shortage of microchips, and add to this Ukraine and the case of steel, which will hurt auto parts components".

"Although we would not want to touch the subject of the automotive sector in the labor behavior, without a doubt and it is not that it is desired, but if we are going to have the need to analyze the technical stoppages," commented the CTM leader.

"This is because if I were given the choice of a temporary suspension or instead of a layoff, it would be more pitiful if we were to fall into a massive layoff in the auto parts industry," he added.

He explained that intelligent mechanisms will have to be generated, as well as different strategies so that in the face of any crisis that could affect the safeguarding of jobs in Coahuila is put first.