An initial agreement might be in place but before the signing of USMCA many edges must be smoothed, among them the tariffs on steel and aluminum that the US still has in place. For more on that subject, do not miss our latest analysis piece. The deal is scheduled to be finalized by Nov. 30, 2018, but US President Donald Trump is still threatening to cut ties with Mexico over immigration issues.
But USMCA is just one of the hot topics of the past week. For more on what happened, keep straight ahead!
USMCA Still in the Spotlight
As a new caravan of immigrants moves toward Mexico from Honduras, Trump once again threatens to cut trade ties with Mexico unless the government agrees to stop the caravan. “The assault on our country at our Southern Border, including the Criminal elements and DRUGS pouring in, is far more important to me, as President, than Trade or the USMCA. Hopefully Mexico will stop this onslaught at their Northern Border. All Democrats fault for weak laws!” Trump tweeted.
Under USMCA, used-vehicle imports would also have to comply with new rules of origin, which could limit the entrance of scrap vehicles to Mexico, according to Guillermo Rosales, Director General of AMDA.
Although USMCA will bring new opportunities, Luis de la Calle, Director of consulting company De la Calle, Madrazo, Mancera, says Mexico must also develop business in other global markets to increase vehicle exports and offset challenges regarding stringent rules of origin.
Despite challenging tweets from Elon Musk, US District Judge Alison Nathan in Manhattan approved the US$40 million settlement between Tesla and the US Securities and Exchange Commission.
Kia Motors México introduces its new Sportage 2019 with semiautonomous features and plans to sell 7,000 units before the end of the year, according to Horacio Chávez, Managing Director of the company.
Starting February 2019, NR Finance will include Mitsubishi in its portfolio. Rafael Portillo, Director General of NR Finance México & Anzen Broker, says the financing company expects a penetration of 55 percent of the brand’s sales.
Following proposals from Goldman Sachs Group and Morgan Stanley, Uber’s IPO could be worth US$120 billion – far more than the company’s valuation at US$76 billion.
Grupo KUO will invest US$150 million to develop a new automotive transmission that will hit the market in the second half of 2019, according to Alejandro de la Barreda, Director General of the company.
Meanwhile, Grupo Industrial Saltillo announced an investment of US$2 million to boost its auto parts division, Draxton. Part of the resources will go to create an engineering and R&D department.