Natural Gas Shortage Halts Car Industry’s Operations in Mexico

Volkswagen, General Motors, Kia Motors, and Mazda announced that they are suspending some of their operations in Mexico due to a natural gas shortage caused by the US winter storms.

The shortage started when Texas Governor Greg Abbott announced Wednesday that he was placing a ban on gas leaving the state until February 21 to ensure Texas had enough supplies to keep their powerplants running.

The insufficient supply to major manufacturers has been drastically cut and reduced or halted their operational capacity.

Luz María de la Mora, Mexico’s deputy minister for foreign trade, said that they do not believe Abbot’s decision was  “the only option.”

GM stopped production at the Silao plant on Tuesday and Wednesday and said it planned to resume production after gas supplies normalize but did not give a timeline. 

VW said that production of its Jetta, Taos, and Golf models would all stop by Friday at its Puebla plant. 

Kia has already shut down production in Pesquería, Nuevo León since Thursday while Mazda shut down its plant in Salamanca, Guanajuato, and would do so until Saturday.

Despite the temporary ban, Mexico is expecting gas to come by sea from ports in California and Texas but the latter is still unsure due to the ongoing ban. 

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