The resilience of the Mexican automotive industry to Covid-19

ABSTRACT

COVID-19 has had a swift and deep impact on almost all economic sectors, with its effects on the automotive industry standing out in Mexico due to its economic relevance and international ties. Using official statistics and newspaper sources, this investigation shows the resilience of the Mexican automotive industry;its nearly complete halt in production and exports contrasts with a limited destruction of jobs, as they are mainly made up of formal jobs in large companies. But the recovery comes at a price, lower wages and different speeds of recovery, with the Bajio as the most affected region. Similarities with the 2008-09 crisis are clear (fast reestablishment of production and export vs. slower reinstatement of employment) and its solution will also depend on the external sector, mainly the United States.