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2mo ago

SKF to Shut Monterrey Plant, Shift Output to Puebla and La Silla as EV Demand Cools

The move signals a broader shake-up in Mexico’s auto sector driven by slower electric-car uptake.

SKF busca mejorar su rentabilidad con un modelo más eficiente ante cambios en la industria automotriz. /Reuters
Image
La producción será trasladada a Puebla y La Silla como parte de un ajuste en la estrategia industrial. /Reuters/Canva

Overview

  • SKF, which disclosed the move Wednesday, will close its Monterrey factory as part of a North America reconfiguration and shift automotive work to Puebla and industrial output to La Silla in Nuevo León.
  • The change will cut about 390 jobs in Monterrey while creating roughly 100 roles in Puebla and La Silla, leaving many workers facing a net loss of local jobs or the need to relocate.
  • The company cited weaker-than-expected electric-vehicle demand and the 2025 split of its auto and industrial businesses, a combination that left the shared Monterrey site redundant for each division.
  • SKF estimates the restructuring will cost about half a million Swedish kronor, a charge the company linked to consolidating production into dedicated plants.
  • In a sign of the sector’s churn, Chinese automaker GAC said it plans to start Mexican assembly in the second half of 2026 to serve the local market, a path made more attractive by new tariffs on China-built cars and programs that ease taxes for local manufacturing.