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Mexican Pipeline Explosions Seriously Effect Auto Production
01:43 p.m. EDT, September 12, 2007

Attacks in southern Mexico against fuel pipelines are having a wide-reaching effect on production at four major automotive assembly plants in the country.

Work at facilities owned by the Ford Motor Co., General Motors, Chrysler LLC, and Volkswagen AG has been suspended after six natural gas pipelines suffered damage in the explosions.

The work schedule at the Nissan plant at Aquascalientes was also disrupted on Monday and Honda's El Salto plant in Jalisco could also be effected later in the week.

As many as 50 supplier plants have been forced to either cease their operations or are being asked not to make deliveries.

Petroleos Mexicanos, the state energy monopoly known popularly as Pemex, is working to restore service in the wake of the explosions.

Models effected by the situation include the GM Suburban, Silverado, Avalance, Sierra, Escalade EXT, and GMC Yukon as well as the Silverado and Chevy C-Series.

Ford makes Fiesta Ikon sedans and F series trucks at its facility while VW produces Jettas and New Beetles. The Chrysler plant assembles PT Cruisers. The Honda plant produces CR-Vs.

The overall effect of the explosions could have a serious effect on Mexico's image as a safe nation in which to place production plants. A number of entities are currently in negotiations for the placement of new assembly projects, talks that could be damaged by the recent violence.

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