Nemak, a manufacturer of structural components for vehicles, expects a slowdown in capital spending on its assets for up to five years. The reason for this is the cooling of the market for electric cars in North America, Europe and China, which has led to a slowdown in orders for components and auto parts.
Armando Tamez, Nemak's director, said at an analyst conference that at the end of the third quarter, Nemak had recorded investments of $96 billion, 26 percent less than the amount invested during the same period last year.
We have seen a slowdown in sales of electric cars in North America and Europe. That's why we have seen significant growth in both hybrid and non-hybrid cars, which is why we will be significantly reducing our capex over the next three to five years,” he said.
Source: www.nemak.com