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 Business News | September 2007 
Mexico Bombing Crimps Auto Production
 Alejandro Bodipo-Memba - Free Press
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 |  | Right now our Cuautitlan plant has been shut down due to the lack of natural gas.
- Octavio Navarro, Ford Mexico |  | |
The bombings that severely damaged natural gas pipelines in Mexico have halted vehicle production in Mexico for the Detroit Three automakers and Volkswagen AG, according to reports.
Bloomberg News is reporting that the Popular Revolutionary Army is claiming responsibility for bomb attacks on pipelines in the Mexican state of Veracruz. The group said it placed 12 explosive charges along gas ducts operated by government oil company Petroleos Mexicanos, according to a statement posted to a Web site that tracks rebel groups, according to Bloomberg news.
Some of Mexico’s biggest industrial companies shut operations Tuesday, costing businesses an estimated $100 million a day.
Published reports also said plant operations for General Motors Corp., Ford Motor Co., Chrysler LLC and Volkswagen AG in Mexico were affected.
Officials at Ford said operations at its Cuautitlan plant were stopped because of the explosion.
“Right now our Cuautitlan plant has been shut down due to the lack of natural gas,” said Octavio Navarro, a spokesman for Ford in Mexico. “We don’t know when operation will come back online. It all depends on when the pipelines are restored.”
The Cuautitlan plant produces the Ford Ikon and F-Series trucks primarily for the Mexican market.
Chrysler, which makes the PT Cruiser for sale in the United States, also experienced a loss of power.
“We have temporarily halted operations at our Toluca facility where they make the PT Cruiser,” said Michele Tinson, a spokeswoman for Chrysler. “The plant has about 2,400 employees who work two shifts. We could also require actions at the Saltillo plant, where the Dodge Ram is built. But we don’t know if it has been affected yet.”
Tinson said the Mexican government is working to remedy the situation, but no time frame has been given yet as to when operations would restart. She added there were no worker injuries related to the accident.
Other published reports said Volkswagens operations in the area would be suspended for at least a week. However, officials at the Volkswagen USA headquarters in Michigan didn’t comment. VW makes the Jetta and the Beetle at their Mexico plant.
Calls to GM weren’t immediately returned.
Contact Alejandro Bodipo-Memba at abodipo@freepress.com. Free Press wire services contributed to this report. |
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