Facing clean fuel shortfall, auto parts industry holds up 18bn pesos

The auto parts industry halted investment of 18 billion pesos (US $958 million) in the second half of last year as a result of the government’s decision to delay mass production and widespread distribution of ultra-low-sulfur diesel (ULSD) while demanding that new heavy vehicles be manufactured with environmentally-friendly technology.

The Energy Regulatory Commission (CRE) voted in December in favor of postponing for five more years the implementation of a rule requiring Pemex to produce, distribute and sell ULSD across the country. The postponement followed a deferral of the rule in late 2018.

According to the CRE resolution, the state oil company can only continue marketing ULSD in the country’s three largest cities – Mexico City, Guadalajara and Monterrey – and along the northern border.

Alberto Bustamante, foreign trade director of the national auto parts industry association, INA, who cited the 18-billion-peso figure at a press conference on Thursday, said that if the government continues to demand that heavy vehicles be made with clean technology even though ULSD is not widely available, an additional 2 billion pesos in investment will be lost in the first half of 2020.

Jobs could be lost in the auto parts sector as a result of the decline in investment, he said.

Miguel Elizalde, president of the National Association of Bus, Truck and Tractor Manufacturers, said that if ULSD is not available, companies won’t buy new heavy vehicles that were built to run on it and emissions levels won’t fall as a result.

He called on the Secretariat of the Environment to put an end to the requirement for new heavy vehicles to be built with EPA10 and EURO VI clean fuel technology until the production and widespread availability of ULSD is guaranteed.

Elizalde said last year that “we need to have total availability of ultra-low-sulfur diesel so that these clean technologies can be put to work.”

The president of the National Chamber of Trucking, Enrique González, pointed out Thursday that people are putting off the purchase of new heavy vehicles because they know that there is no obligation to supply ULSD to 81% of municipalities across the country.

Source: El Universal (sp), El Heraldo de México (sp) 

Have something to say? Paid Subscribers get all access to make & read comments.
Donald J. Trump at a rally

Trump says he’s ‘not looking to renew’ the USMCA, but the talks continue

5
The U.S. president walked back his initial rejection to something slightly more ambiguous, but still stressed his disdain for the accord, repeating "we don't need anything Mexico has."
NL Gov. S. García

Gov. García, already in ‘party mode,’ offers free beer at Monterrey’s World Cup Fan Fest

3
While other major cities across the nation are banning alcohol at their World Cup Fan Fests, alcoholic drinks will be sold at the Monterrey event, and, according to the governor, beer will be free.
Mexico City Stadium

Mexico City’s box seat owners kept their seats at the World Cup — but they’ll pay dearly to eat in them

0
If they want to eat and drink, box owners will be forced to purchase "hospitality packages" directly from FIFA, which reportedly cost US $75,000 for 12 people for all five World Cup matches at Mexico City Stadium.
BETA Version - Powered by Perplexity