Daimler readies for USMCA, news by Hebei Longsheng
| Daimler readies for USMCA as COVID-19 disrupts factory flow Daimler has had to close its Mercedes Benz factory in Alabama due to a parts shortage, potentially from Mexican suppliers. While it had reopened the factory on April 27, its Mexican suppliers could remain closed until June 1 due to COVID-19 related restrictions on non-essential manufacturing. Daimler’s exports from Mexico fell by 12.1% year over year in March including both Daimler Trucks and Mercedes Benz. Shipments of parts to Mercedes Benz in the U.S. however surged 23.3% higher in March. Many of the largest suppliers to Mercedes Benz from Mexico are offshoots of its German partners. That may indicate a shift in supply mix ahead of the new rules in the U.S.-Mexico-Canada Agreement which comes into effect from July. Cable manufacturer Kromberg & Schubert increased shipments from Mexico to the U.S. for Daimler by 14.8% year over year in the 12 months to March 31 and represented 49.9% of the total shipments. That was followed by ThyssenKrupp’s Bilstein suspension business with 14.8% of the total and wheel supplier Ronal with 9.1%. By Hebei Longsheng Metals & Minerals Co,. Ltd. |
