A chilling effect on automaker investment in Mexico
A growing number of auto companies — including Tesla and the multinational manufacturer Stellantis — have either paused or are said to be reconsidering Mexico investment plans as a result of the tariffs Trump has threatened to levy upon taking office on Jan. 20, 2025.
Barbeyto said tariffs are particularly worrisome for auto manufacturers who rely on thousands of parts that cross borders multiple times before final assembly is completed. Still, he said he was confident that the U.S. and Mexican governments would negotiate an acceptable solution.
Even though Mazda has a Plan B ready, Barbeyto said the company is “working to continue growing in [Mexico], both in manufacturing and in the sale of new vehicles.”
Tom Donnelly, the chief of Mazda’s U.S. operations, told Bloomberg that Plan B could involve shifting some of its Mexico operations to a plant Mazda runs jointly with Toyota Motor Corp. in Alabama.
Last week, Mexico’s Economy Minister Marcelo Ebrard met with auto industry chiefs, asking them for information to help Mexico strengthen its negotiating position. According to Barbeyto, who attended the meeting, Ebrard also reportedly asked the auto companies to find ways to substitute components they currently buy from China for parts made in North America.
Last month, Ebrard told reporters that the United States would be shooting itself in the foot if it imposed a 25% tariff on Mexican exports. He warned that a trade war — President Claudia Sheinbaum has strongly implied that she would respond with retaliatory tariffs — would negatively impact some of the most important North American companies, particularly automakers General Motors, Stellantis and Ford.
With reports from Bloomberg News, El Financiero and Reuters
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Publish date : 2024-12-12 08:25:00
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