Congestion at the U.S.-Mexico border is affecting vehicle and parts shipping, resulting in further delays and other logistics issues for the auto industry. The delays are reportedly the result of hundreds of thousands of migrants from Central and South America, as well as additional inspections by U.S. officials. The delays are leading to automakers searching for new ways to move goods across the border.
GM San Luis Potosi plant in Mexico
According to a report from Automotive News, which cites Bloomberg, at least 19,000 trucks are now idling at the border, leaving roughly $1.9 billion of goods in limbo. In addition to an influx of people, the delays are also attributed new inspections instituted by Texas state officials, which were put in place in September to search for illegal border crossings and drug smuggling. Temporary border crossing closures have also caused Ferromex, the largest railway operator in Mexico, to suspend freight train service. Officials in Panama indicate that some people are attempting to cross the border by boarding railway cars carrying new vehicles into the U.S.
GM Ramos Arizpe plant in Mexico
Per the U.S. International Trade Administration, Mexico produces roughly 3 million vehicles a year, three-quarters of which are exported to the U.S. GM operates several production facilities in Mexico, building vehicles like the Chevy Silverado, GMC Sierra, GMC Terrain, Chevy Equinox, Chevy Blazer (internal combustion-powered), and the all-electric Chevy Blazer EV. According to GM spokesperson Kevin Kelly, GM is “experiencing slight delays in shipping across the border,” but the supply situation is reportedly improving. Kelly did not specify the number of vehicles affected by the congestion. In response to the border situation, Kelly said that GM has opted to transport vehicles from Mexico to the U.S. via sea, a solution that GM is implementing “on a limited basis.”
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Comments
If its not one thing, it’s another. This is INSANE!
Maybe, they should build their product in the USA. Mary is big on excuses and short on answers.
If they were made in the USA, you couldn’t afford them…especially if the UAW gets their wish of a 40% raise.
Mexico is nothing but a totally corrupt narco state.
If they wanted the free flow of goods they would help themselves by impeding the flow of drugs and illegals but that would do nothing but close there flow of blood money.
Shutdown the border and let them make there choices.
Prices have gone up and up since covid and they import 1.4 million vehicles from Mexico. Prices are not reduced because Mexico built them!! Billions in profits and share buy backs! But workers are greedy. LOL.
Thanks Brandon!