A look into Mexico's auto industry after Trump slaps new tariffs

A look into Mexico's auto industry after Trump slaps new tariffs
Image Credit: Pixabay
  • Country:
  • Mexico
  • United States

U.S. President Donald Trump said on Thursday a tariff of 5% would be imposed on all goods coming from Mexico, increasing gradually each month until reaching 25% on Oct. 1, unless Mexico takes immediate action to curb illegal immigration. Such a move would likely hit a number of global firms with those in the auto industry looking particularly vulnerable. Automakers have long built vehicles in Mexico, taking advantage of the country's cheap labour, trade deals and proximity to the United States, the world's largest auto market after China.

Below are Mexican production and export figures for automakers in 2018, supplied by the Mexican Automotive Industry Association, and for companies in other industries which have a manufacturing presence in the country.

AUTOMAKERS:

General Motors Co-Production: 834,414 vehicles. Exports: 811,954 vehicles. The largest automaker in Mexico, with 14 manufacturing facilities. Nissan Motor Co Ltd

Production: 762,408 vehicles. Exports: 496,333 vehicles. Makes the most vehicles in Mexico among Japanese automakers. Exports from Mexico to the United States account for roughly one-quarter of its U.S. vehicle sales, industry experts say.

Produces the Sentra and Versa in Mexico for the U.S. market. Fiat Chrysler Automobiles NV

Production: 639,022 vehicles. Exports: 630,967 vehicles. Volkswagen AG

Production: 435,373 vehicles. Exports: 377,437 vehicles. Kia Motors Corp

Production: 294,600 vehicles. Exports: 231,695 vehicles. South Korean automaker said production includes 55,978 Verna small cars made for affiliate Hyundai Motor Co.

Ford Motor Co-Production: 280,499 vehicles. Exports: 273,009 vehicles.

Toyota Motor Corp Production: 191,978 vehicles. Exports: 187,569 vehicles.

Audi AG Production: 173,098 vehicles. Exports: 172,232 vehicles.

Mazda Motor Co Production: 149,589 vehicles. Exports: 137,463 vehicles.

Honda Motor Co Production: 147,158 vehicles. Exports: 130,542 vehicles.

AUTO SUPPLIERS:

Japan's Denso Corp and Aisin Seiki Co have a manufacturing presence in Mexico. Vehicles and parts comprised Mexico's biggest export item to the United States in 2018, totalling $93.3 billion, according to the U.S. Census Bureau.

ELECTRONICS:

LG Electronics Inc South Korean firm makes television sets and refrigerators in Mexico for the U.S. market. Almost all of the TVs are shipped to the United States; about one-third of the refrigerators likewise goes to the United States, a company spokesperson said.

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