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.
workers

Labor Ministry hails steady job growth, but economists urge against too rosy an interpretation

0
Labor Minister Marath Bolaños reported on Tuesday that 60.2 million people were employed in Mexico and 422,000 more jobs had been created during the first quarter this year than during Q1 2025.
Nassón Joaquín García, shown here welcoming guests from 54 countries to a convicatiuon of his

Judge reopens criminal case against former leader of Mexico’s Luz del Mundo Church

0
The former leader of the Guadalajara-based church, the spiritual home of some 3 million Mexicans, is serving time in California for sexually abusing children. He'll now face similar charges in Mexico.
"El Jardinero" surrounded by Mexican naval special forces

Mexican Navy captures top CJNG commander ‘El Jardinero’ in Nayarit

0
In a statement, the navy boasted its precision in locating and arresting the target — who was surrounded by at least 30 pickup trucks and 60 armed personnel — without firing a single shot.
BETA Version - Powered by Perplexity