Tag: Mexico

By on May 23, 2017

lansing assemblyl

As the clock counts down to the beginning of talks aimed at revamping the North American Free Trade Agreement, automakers in Mexico, the U.S. and Canada know one thing they don’t want to see changed — rules of origin.

Auto manufacturers must abide by minimum regional (NAFTA-wide) content rules in order for vehicles to remain free from import tariffs. President Trump’s proposed reforms aim to benefit U.S. companies, but could lead to greater costs heaped onto automakers — something no profit-minded company desires.

Naturally, automakers wants their feelings known well before the three countries get down to brass tacks. (Read More…)

By on May 18, 2017

us-capitol

U.S. Commerce Secretary Wilbur Ross want to begin formal talks to renegotiate the North American Free Trade Agreement with Canada and Mexico in a little over three months, adhering to the campaign pledges made by President Donald Trump last year. Ross explained to reporters that “sometime in the next couple of weeks” he will issue a notice to Congress stating the Trump administration intends to start formal NAFTA negotiations in just 90 days.

However, since he expressed his intentions in front of a gaggle of reporters, Congress is probably already aware. But it won’t be “official” until they get a piece of paper signed by the appropriate parties on the applicable letterhead — hopefully, embossed with a fierce-looking eagle surrounded by dollar signs.  (Read More…)

By on May 1, 2017

tesla factory fremont

Tesla Motors is headhunting engineers from Mexico to work on automated equipment at its Freemont, California factory. While the brand can still call the forthcoming Model 3 “the most American” car in the world — once it takes delivery of Nevada-produced 2170 battery packs — it might not be able to make the same claim for its workforce.

The brand has had union troubles with the German robotics unit supplying the automated assembly lines essential for the Model 3’s timely production. While the recruitment effort in California may not be a direct response to that, it is definitely part of Tesla’s efforts to ensure it can adhere to the timetable it has set for the electric vehicle. The company has preorders out the wazoo and wants to build 500,000 cars a year at the Fremont plant by 2018, which requires a sextupling of 2016’s production figures.  (Read More…)

By on May 1, 2017

Ford badge emblem logo

Ford Motor Company thinks it has the answers for the impending renegotiation of the North American Free Trade Agreement. Joe Hinrichs, Ford’s president of the Americas, believes the key to an updated NAFTA includes protections against currency manipulation and the standardization of product regulation between the United States, Canada, and Mexico.

Of course, Hinrichs is just one voice of many. Despite his initial threat of NAFTA’s abolishment failing to pan out, President Trump has maintained a hardline stance — stating he will negotiate a better deal for the U.S. (or pull out if he can’t). Meanwhile, Democratic Senator Sherrod Brown has urged for transparency throughout the process while echoing some of Trump’s campaign promises to stick up for American jobs by not showing favoritism or allowing industries to play against each other.

By contrast, Hinrichs’ proposals are specifically focused on streamlining the auto industry and avoiding long-standing complications associated with financial witchcraft.  (Read More…)

By on April 26, 2017

2017 Ford Fusion Sport

According to a report from a Minnesota news outlet, Mexican drug smugglers and their American co-conspirators are using imported Ford Fusions to ferry marijuana across the border.

The news follows recent drug busts in the state, with suspicion growing that the $1.4 million in weed found in 22 Fusions bound for dealerships is part of a larger smuggling ring. (Read More…)

By on March 31, 2017

Donald Trump

The Trump administration is changing its tune regarding the North American Free Trade Agreement.

Despite the president calling the pact the “worst deal” in history throughout his campaign and hinting his goal was to abandon the agreement, the White House intends to keep numerous provisions while seeking more moderate changes.

Among the more controversial arrangements Trump intends to keep are the arbitration panels that permit investors in the three nations to circumvent local courts to resolve civil claims. The administration even has a proposal that would improve these bodies’ procedures to resolve disputes.

Is this the bold trade overhaul that Trump promised on the campaign trail? (Read More…)

By on March 22, 2017

U.S. Mexico Border

Now that Mexican negotiators aren’t reacting specifically to President Trump’s heated rhetoric over foreign trade policies, their terror and rage has begun to subside. The North American Free Trade Agreement might even continue to exist for the time being.

Trump’s previous attacks on NAFTA, import tariff threats, and promise of a border wall incensed Mexican officials to a point where many suggested Mexico should simply abandon the renegotiation talks on principle. However, now that cabinet officials will be speaking on behalf of the president and the focus of the negotiators have shifted toward the fundamentals — and not the politics — Mexico can relax a little.  (Read More…)

By on February 28, 2017

GM Adds Third Shift, 750 Jobs at Wentzville Assembly

In the international poker game of NAFTA re-negotiations, U.S. President Donald Trump should not assume his Mexican opponent will be playing with a losing hand, an auto industry expert says.

“I’m going to be surprised if we see a heck of a lot changed,” said John Holmes, researcher at the Automotive Policy Research Centre at McMaster University in Hamilton, Ont. “The industry now is so highly integrated.” (Read More…)

By on February 27, 2017

U.S. Mexico Border

Ildefonso Guajardo, Mexico’s senior trade negotiator, reaffirmed his position to break off talks to reconfigure NAFTA, saying his country will completely abandon talks if the United States continues threatening levies and caps on products coming in from its southern border. He said Mexico will refuse to even consider the kind of tariffs President Trump has discussed and revert back to World Trade Organization rules. Under those guidelines, the most the U.S. could impose on a Mexican product would average 3 percent.

“The moment that they say, ‘We’re going to put a 20 percent tariff on cars,’ I get up from the table,” Guajardo said in an interview. “Bye-bye.” (Read More…)

By on February 14, 2017

Donald Trump Sr. at #FITN in Nashua, NH, Image: By Michael Vadon (Donald Trump Sr. at #FITN in Nashua, NH) [CC BY-SA 2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons

Since the inauguration of U.S. president Donald Trump, Canadian political and auto industry officials have taken every opportunity to highlight the economic prosperity and millions of jobs that depend on cross-border trade. And the lobbying seems to have paid off.

At a joint press conference following the first official meeting Monday between Trump and Canadian Prime Minister Justin Trudeau, the U.S. leader praised the economic ties between the two countries.

“We have a very outstanding relationship with Canada. We’ll be tweaking it,” said Trump. “We’ll be doing certain things that are going to benefit both of our countries.”

At the same time, he took a swipe at the trading relationship with Mexico, calling it “unfair to the United States.”

(Read More…)

By on February 10, 2017

2015 Volkswagen Jetta TDI, Image: Volkswagen of America

A border tax placed on Mexican goods bound for the United States would be a worst-case scenario for struggling Volkswagen.

The automaker, which already knows a few things about worst-case scenarios, is waiting on pins and needles to see if the proposed tax prices its small cars out of the market. (Read More…)

By on February 1, 2017

BMW Group CEO Harald Krüger says the automaker fully intends on sicking with its current investment strategies in Mexico and the United States, even after President Donald Trump’s proposal to levy steep import taxes on vehicles brought into American borders.

“We need free world trade,” Krueger told the CAR Symposium automotive congress in Bochum, Germany, on Wednesday. (Read More…)

By on January 27, 2017

Vicente Fox (Gage Skidmore/Flickr)

When Mexican President Vicente Fox Quesada left office in 2006 after a six-year stint, he didn’t go quietly into political retirement.

With the advent of social media, the outspoken Fox gained the ability to launch barbs with ease and generally treat politicians like a well-used piñata. His latest target? Take a guess.

Following President Trump’s recent declarations — including a promise to renegotiate the North American Free Trade Agreement and a threat to impose a 20 percent border tax on Mexican goods — Fox spoke his mind on the issue, trolling Trump on Twitter and making statements on the U.S. auto industry that won’t get him invited to many parties in Detroit. (Read More…)

By on January 26, 2017

Donald Trump

Consumer products and vehicles produced outside of the U.S. could see a big hike in sticker price if the Trump administration goes ahead with a proposed plan to tax Mexican goods — and eventually all foreign goods — to the tune of 20 percent.

The White House said today the measure is being looked at as part of a wide-ranging tax overhaul package under consideration by Congress. The announcement came after an anticipated visit by Mexican President Enrique Pena Nieto went south. (Read More…)

By on January 24, 2017

White House, Washington DC

At the start of the second real workday of the Trump administration, the leaders of the Detroit Three automakers marched into the White House for a breakfast meeting with their newly minted president.

We don’t know for sure what they ate, but we can relate what they talked about. This won’t come as a shock: investment. Specifically, assembly plant investment in the U.S., rather than Mexico.

Ford CEO Mark Fields, General Motors CEO Mary Barra and Fiat Chrysler Automobiles CEO Sergio Marchionne knew the landscape they were entering. Yesterday, Trump signed an executive order that pulled the U.S. out of the Trans-Pacific Partnership and moved to renegotiate the North American Free Trade Agreement. Today, he signed an executive action to advance approval of the Keystone XL and Dakota Access pipelines.

Deals. Besides perhaps eggs and toast, Trump wanted deals. Or, at this early point, promises and assurances at the very least. (Read More…)

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