The automotive sector in Mexico: the impact of automation and digitalization on employment

In recent years, an important debate has intensified regarding the impact of the implementation of automation and digitalization on employment. There are different studies and positions in this regard, and although these technologies are being used more and more in different sectors, the automotive industry stands out as a large consumer and producer of new technologies, such as those associated with Industry 4.0. This study describes the implementation of automation and digitalization processes in two automotive plants and analyses their effects on employment. The cases of Toyota-Guanajuato and Ford-Hermosillo are presented. These plants were established in Mexico during different waves of industrialization. They have increased automation and digitalization, albeit at different stages and degrees of development.

A qualitative methodology is used based on guided visits to the plants, review of internal documents and face-to-face interviews with managers and workers. The fieldwork was carried out at the end of 2021 and in the second half of 2022. The study provides an overview of these plants and documents the automation and digitalization processes of these two companies, including the current technologies used, and how they shape the organization of work, the occupational composition, the salary structure, and the volume of employment. The results of the study put into question the argument that automation and digitalization are causing unemployment, deskilling, and job insecurity in this sector.

Published abstract. Show less