Bulletin 400 - Friday, December 19, 2008

Cuautitlan Izcalli, Mexico,- The last 430 workers of Ford Motor Company's plant in Cuautitlan will receive their severance payment next Wednesday, as part of the reactivation project of this assembly plant, which will be closed next Friday. It will remain closed throughout 2009 and will be opened again in 2010 to produce the new Ford Fiesta. Juan Jose Sosa Arreola, Leader of Ford Workers Union (Straford), explained that the last workers in Cuautitlan Plan will be laid off this week. Only 20 of them will be incorporated to maintenance tasks as part of the Plant's conversion project. "The economic crisis did not have any influence on this Plant's closing", Mr. Sosa Arreola said, pointing-out that "this crossed in our way", because early this year the Company had announced a US$1 billion investment to refurbish these facilities. He said that Ford Cuautitlan will restart operations in 2010 with a new labor force of at least 3 thousand workers. The Plant will stop assembling trucks and vans and will work on a compact cars line, such as Ford Fiesta which has large demand in the US market.

Source: zocalo.com.mx

Mexico City,- General Motors will temporarily close in the. first quarter of next year their plants in Silao, Ramos and San Luis Potosi. Said measure, announced by GM during the weekend, is part of the temporary closing of 21 plants the automobiles assembler has in Mexico, United States and Canada, which means they will stop producing a total number of 250 thousand units. The Company, which headquarters are located in Detroit, Michigan, informed that these movements will affect most of their plants in North America, where a large number will be idle due to a technical stoppage during January 2009. Among the models which will not be produced in Mexico stand out Silverado, Sierra Light, Avalanche, Escalade and Chevy Aveo, among others. Last, in the United States the White House said they could use the US$700 billion financial rescue plan to help GM and Chrysler to continue operating after the Senate rejected the plan to grant immediate loans for US$14 billion.

Source: T21

Mexico City,- Kansas City Southern de Mexico (KCSM) is considering investments for US$380 million next year, an amount they will spend in several infrastructure projects, in spite of the international financial crisis. Jose Zozaya, KCSM Director in Mexico said that this railroad has several credit lines, both internal and external which are already committed. Among the plans to be implemented next year stands out the construction of an intermodal terminal in La Palma Island, located in Lazaro Cardenas Port in Michoacan; around US$80 million will be invested in these works. "This will provide larger potential to the Port, because a port without an efficient railroad may see its growth limited", Mr. Zozaya pointed-out. KCSM is also considering building an international bridge between Laredo, Texas, USA and Nuevo Laredo, Tamaulipas, Mexico. "We have already filed before the US Government and will do in Mexico too, because this project will depend on permits to start the preliminary works and the project itself", Zozaya said.

Source: T21

Coahuila, Mexico,- Electrolux, Swedish manufacturer of home appliances, announced they will lay off more than 3 thousand workers all over the world, a little over 5% of their labor force, due to a strong drop in demand in the last two weeks of November and beginning of December. The measure will be implemented in what is left of 2008 and in 2009 and will cause expenses for one thousand 200 million Swedish Kronor (€112 million) in the last quarter of 2008. Electrolux is expecting to save one thousand 100 million (€103 million) every year as of 2010 with this cut down. Sales in December are usually low and there is therefore the risk for operation revenue in the month to be "slightly negative", the Company pointed-out in a press release and added that in 2008 they will not reach the results they had expected.

Source: Vanguardia

Mexico City, - Even if last October exports from Mexico to the United States fell -7%, Swift Mexico kept its operations level, Reynaldo C. Gomez Leyja, the Company's Director informed. Gomez Leyja said that Swift keeps an average 2 thousand border crossings per month between Mexico and the United States, both for export and import, which has stayed even in the harsh situation in the most active sectors in foreign trade, such as automotive industry, and they therefore consider said behavior positive. Even if he would not discuss growth expectations for 2008 as far as invoicing is concerned, Reynaldo Gomez said that they are confident they will close the year with an increase in sales over 2007, which reached US$260 million. Therefore, Mexico is a very important subsidiary for Swift Transportation Co. Inc., and proof of this is that this year they started providing intermodal services and for 2009 plans are to continue supporting development in this market.

Source: T21

Coahuila, Mexico,- Chrysler informed yesterday they will suspend all their manufacturing operations for at least one month, starting this weekend, due to the credit crisis. The measure includes Derramadero Assembly Plant and Ramos Arizpe Engines Plant in Coahuila, Mexico. Chrysler said that even if dealers are receiving customers, they have been losing between 20% and 25% of these potential sales due to the lack of financing to purchase new cars. "As a result of the financial crisis, the automobiles market is still depressed, before the persisting lack of credit for consumption to potential customers", the Company said in a press release.

Source: Vanguardia