Downwards in the automotive market, provokes firings in harnesses

Photo (Carlos Yescas Alvarado)

-There is less consuming of automobiles, points out leader of Canacitra.

DURANGO, DGO.-Maria Magdalena Gaucin Morales, president of the Industrial National Chamber of the Transformation (Canacintra), pointed out although it is true there has not been massive firings in companies producing harnesses in the entity, there is a downsizing of 5% in these, due to the automobile consume, where these parts go, has gone considerably downwards.

Gaucin Morales indicated that “they are not massive firings, but there are areas where there is not the same production, then there has to had dismissal, mainly in the automobile sector, which was having an increase in the last years, but now has come a little low”.

This situation could be considered ‘normal’, she explained, since, “right now it is not consuming as much automobile, as it was consumed before”, and added that this is not due, at least not now, to the Free Trade Agreement (FTA), “because it´s still not hitting us. What is happening right now is that people are not consuming the same vehicles, because there is an analysis referenced to the financed cars, so, this is the period in which the industry that produces harnesses is having that decrease”.

By questioning her if there is a risk of the FTA ending and this provoking, now, massive dismissals, the leader commented, “I feel that is that very important point for us here in Durango. The FTA would impact a lot in the harness industry, because the costs for them are very competitive at a worldwide level, and now Durango competes, by the closeness with the United States, so it is really important the FTA, at least in this industry it cannot impact, to have a negotiation, because it has not been treated openly on the table, the harness industry, but it is a point that impacts our state”.

Likewise, she was questioned if other business areas could be downsizing obeys the market, for how is it managed, how I was saying, they are selling us so much automobiles how it were selling them two years ago, then that is what makes the purchase go down, therefore the production goes down”.

Gaucin Morales also underlined that for the moment does not exist the risk of the companies retiring of Durango, although he argued, it could happen, “and that will be, depending of the last negotiation of the FTA , but for now it would be very adventurous to say they will leave, because it´s so much investment they have here, but we depend so much of the goals accomplished in the FTA, because they would be in another scheme.

Finally, expressed that is not only Durango´s situation, “worldwide level everything is very competitive. Everyone competes to have the best facilities, but everything depends of the promotion we do; in Durango there is a really good manpower and also a lot of investment attraction, but this is at a worldwide level”.

By Carlos Yescas Alvarado

Special/Enlace magazine

Written translation

Misha Galván