With looming threats of new tariffs implemented by US President Donald Trump, automotive companies are getting ready to fight for the preservation of adequate business conditions and the competitiveness of the industry in general.
Although Mexico is ready to continue negotiations with Canada and the US, new markets are becoming more attractive as the CPTPP slowly turns into a reality.
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Representatives of the automotive industry in Mexico, Canada and the US are ready to take Trump’s decision to make vehicle imports a matter of national security to the tribunals on July 19.
Ildefonso Guajardo, Minister of Economy, expects the CPTPP will be enforced before the end of 2018 after it is ratified by five other countries.
Despite the imminent presidential elections in Mexico, all countries have agreed to continue NAFTA negotiations although there is no date for new talks.
Development of the Domestic Market
Between October 2011 and October 2017, prices for light vehicles acquired through financing have increased by 20 percent although the overdue portfolio moved no further than 1.6 percent during this period.
Sales of electric and hybrid vehicles amounted to 3,564 units between January and March 2018, led by Mexico City with 34.6 percent of the total sales of this kind of vehicles.
Production of light vehicles increased 0.6 percent between January and May 2018 to a total of 1.6 billion and, even without Nissan’s numbers, exports increased 11 percent to a total of 1.3 billion units.
OEMs’ Global Strategies
Carlos Ghosn, CEO and Chairman of the Renault-Nissan-Mitsubishi Alliance and CEO of Renault, might step down from his position in the French automaker before the end of his tenure in 2022.
Automotive Fuel Cell Cooperation, a joint venture between Ford and Daimler, will cease operations this year after Ford decided to take its fuel cell technology development in-house.
Following a decision to adapt to the new trends in the industry, Toyota invests US$1 billion in ride-hailing company Grab.