Mexico bombings affecting Big 3, VW, Honda manufacturing operations

September 13, 2007

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Mexico flagA series of recent bombings targeting natural gas pipelines in southern Mexico has now caused five carmakers to halt production in the country. The attacks have apparently been the work of the Popular Revolutionary Army, a rebel group in the state of Veracruz.

General Motors, Ford, Chrysler, Volkswagen and, most recently, Honda, have all had to close plants in the past couple of days due to a lack of natural gas needed to power operations. A number of additional plants as well as supplier’s plants may be affected over the next few days as well.

GM is working to switch over to propane at some of its plants, but others will remain closed until the natural gas supplies are restored. The Mexican oil company Pemex expects to have the pipelines restored and running again sometime between Sunday and Monday.

[Source: Detroit Free Press and Automotive News]

 

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