Mexican truck and bus production plunged severely at the end of 2019 due in large part to doubts over the future of a new diesel rule that might require that only automobiles utilizing cleaner-burning fuel are made and bought, in accordance with a local trade group.
The meeting of trucks and buses plunged practically 38% in December, data from commerce association Anpact showed, in keeping with diving production of heavy vehicles since August.
Despite the due date in December 2019 was a record year for production, up 12% from 2018, based on Ampact, whose members include Volkswagen and Navistar International.
The trade organization attributed the production decline to firms’ hesitation to update their fleets amid uncertainty about a rule that would mandate the usage of clean diesel starting in 2021.
Concerns in regards to the rule remain because Pemex won’t be required to produce, distribute and sell ultra-low-sulfur diesel (ULSD) until 2025, potentially leaving transportation firms without a guaranteed supply of gasoline.
Anpact has asked Mexico’s environmental ministry to amend the rule so that autos running on conventional diesel can coexist with those operating on ULSD until the availability of clean diesel is guaranteed nationwide.
Exports, which represent 85% of production, dropped 27.4% two month ago in contrast with the same month in 2018, hit by lower demand in the U.S. and Canada, Anpact stated.