Remember President Donald Trump’s threat to slap a tariff on every product the U.S. imports from Mexico? That threat in early June, which the president later dropped, had auto executives apprehensive.
The latest numbers from Mexico reveals why so many in auto commerce had been so concerned.
Mexican factories despatched 1.37 million vehicles north of the border in the course of the first half of this 12 months — making up 16.3% of the U.S. auto market, in response to Mexican auto commerce group, the Asociacion Mexicana de la Industria Automotriz.
That’s up 13% over the identical time closing 12 months and establishing 2019 for an extra record-breaking 12 months for Mexican auto imports. A record 2.6 million vehicles had been imported from Mexico to the U.S. in 2018, making up 15% of the U.S. auto market, in response to the Mexican auto commerce’s latest report launched Monday.
In June alone, automakers exported slightly below 250,000 new automobiles, automobiles and SUVs to the U.S., an increase of 9.2% in distinction with the identical month closing 12 months.
BMW employees in San Luis Potosí Mexico engaged on 3 sequence automobiles.
Those numbers are further affirmation automakers, with a few exceptions, proceed in order so as to add and develop assembly traces in Mexico, even when it attracts the ire of the Trump administration.
In early June, Trump threatened to put a sequence of escalating tariffs starting at 5% on every product imported to the U.S. from Mexico besides the Mexican authorities helped curb the number of migrants crossing into the U.S. The threat prompted Mexico to take actions at the border and after 9 days of threats, Trump dropped the thought.
For auto executives, the chance might need induced problems, nevertheless, it didn’t drive any changes to supply and assembly traces which could be firmly entrenched in Mexico.
Take BMW, in early June it formally opened a model new assembly plant in San Luis Potosi that builds 3 Series sedans, it’s the hottest car. Most of those automobiles will most likely be shipped north of the border and provided in the U.S…
“Our production network is flexible, but at this point, I don’t see any reason to change our plans,” BMW board member Oliver Zipse suggested CNBC.
BMW Series 3 automobiles produced in San Luis Potosí Mexico and being loaded onto a truck for export.