The current scenario of Mexico’s tanning industry isn’t great. And now Volvo has further complicated the recovery of the Guanajuato’s leather district. Data published by CICUR (the local reference association), say that the segment is struggling, specifically the portion dedicated to the automotive division. News that the Swedish group plans on stop using leather on its vehicles further complicates the situation.
Current economic status
The Guanajuato’s leather district had a revenue of about 17.5 billion pesos (730 million euro) during the first 7 months of 2021. The performance, as reported by Mexican press, is equal to 15% less than the same period of 2019. Yet, the decline has deeper roots than the pandemic. Since 2016, the country’s tanning segment lost about 3 billion pesos in revenue. According to CICUR, the problem doesn’t have to do with leather goods and footwear, but rather automotive.
Volvo ruins the already challenging recovery plans of the tanning industry
Ricardo Muñoz Arona, president of CICUR, is very displeased by the fact that Volvo Cars announced it will stop using leather. Part of it has to do with general beliefs. The Swedish group has joined the (sad) list of global brands that are renouncing leather (with doubtful positions). But he is also displeaded for a specific reason: the Guanajuato area is also site to a German tannery that supplies Volvo. As some say, “no end in sight”.
Read also:
- Volvo’s dirty trick: reforming the livestock industry by punishing leather
- Leather Naturally and LHCA: “Volvo, you don’t know what you’re talking about”
- Brands that (lazily) give up the leather, those that certify it
