Supply Chain Research

The government of Puebla, Mexico has ordered Volkswagen to keep its manufacturing in the state closed until full post-COVID-19 reopening rules have been passed. That may cause continued downstream supply chain disruptions in the U.S. and further afield. Exports from Mexico linked to Volkswagen, of which 23.5% went to the U.S. / Canada in the past 12 months to April 30 and 24.8% went to Germany, already fell by 27.7% year over year in May. The impact on VW’s U.S. supply chain will be focused on components including body parts and brakes, exports of which dropped by 51.2% and 53.8% year ov...