From Miyoung Kim:
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 labor, 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.
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.
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.
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.
Japan’s Denso Corp and Aisin Seiki Co have manufacturing presence in Mexico.
Vehicles and parts comprised Mexico’s biggest export item to the United States in 2018, totaling $93.3 billion, according to the U.S. Census Bureau.
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.
Makes parts in Mexico for its joint venture with General Electric, CFM, the sole engine supplier for Boeing Co’s 737.
Added a plant in Queretaro last year with industrial felt and textiles firm Albany International Corp to make parts for its LEAP engine, which powers the grounded Boeing 737 MAX.
Its Labinal factory in Chihuahua handles nearly all wiring for Boeing’s 787 Dreamliner.
Makes the rear fuselage of its long-range Global 7500 business jet in Queretaro.
The First Trust NASDAQ Global Auto Index Fund (CARZ) was trading at $31.06 per share on Friday afternoon, down $0.62 (-1.96%). Year-to-date, CARZ has declined -26.42%, versus a 3.94% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Reuters.