Supply Chain Research

The governments of the U.S. and Mexico have settled a U.S. complaint under USMCA rules regarding restrictions on collective bargaining at a General Motors’ Silao factory in Guanajuato, Mexico. The use of the “Rapid Response Labor Mechanism” is less cumbersome than a full dispute and may be a model for similar issues in the future. The resolution comes as GM’s supply chain appears to be normalizing. Mexican imports of components linked to the firm were up by 3.4% in May 2021 versus May 2019. Yet, issues at the Silao complex may be behind a drop in imports of engine parts of 52.8% as well ...