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Mexico Autos Output Soars as Trump Administration Settles In
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Looks like there is some work to do on the plan for Made in America car lots
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Mexico Autos Output Soars as Trump Administration Settles In
Mexico gains considerable regional share as production in the U.S. and Canada sags
By John D. Stoll
Updated March 27, 2017 12:33 p.m. ET
The prospect of lowering the U.S. auto industry’s reliance on “Made in Mexico” became thornier during the Trump administration’s early days, as the number of popular pickups and SUVs flooding in from south of the border rose sharply in January and February. ... Mexico’s share of North American automotive production exceeded 20% through two months, gaining considerable regional share amid falling output in the U.S. and Canada over the same period. Analysts expect Mexico’s role in the North American Free Trade Agreement zone to grow as most auto makers have capacity increases planned for Mexico.
Mexico’s momentum comes early in the tenure of a Trump administration vowing to take actions aimed at slowing car and truck imports coming to the U.S., with specific emphasis on products made in Mexico. While vehicle imports from some major markets—including Canada—declined in January compared with the same period a year earlier, the flow of Mexican-made vehicles increased 10%, according to U.S. trade data.
Mexico registered an unexpected trade surplus in February as growth in exports outpaced that of imports, thanks to higher oil prices and strong exports of manufactured goods. Auto exports, increasing 4.9%, were a contributing factor.
The data, published by WardsAuto.com, reveals General Motors Co., Fiat Chrysler Automobiles NV, Nissan Motor Co. and Volkswagen AG scheduled significantly more Mexican light-truck production over the period, helping the country’s auto plants post output increases at a time when the wider North American auto industry is paring back. Many plants in the U.S. and Canada have dialed back production of less popular passenger cars, such as the Chevrolet Malibu, resulting in layoffs at certain factories.
....
Write to John D. Stoll at john.stoll@wsj.com
Appeared in the Mar. 28, 2017, print edition as 'Mexico’s Vehicle Output Climbs.'
Mexico gains considerable regional share as production in the U.S. and Canada sags
By John D. Stoll
Updated March 27, 2017 12:33 p.m. ET
The prospect of lowering the U.S. auto industry’s reliance on “Made in Mexico” became thornier during the Trump administration’s early days, as the number of popular pickups and SUVs flooding in from south of the border rose sharply in January and February. ... Mexico’s share of North American automotive production exceeded 20% through two months, gaining considerable regional share amid falling output in the U.S. and Canada over the same period. Analysts expect Mexico’s role in the North American Free Trade Agreement zone to grow as most auto makers have capacity increases planned for Mexico.
Mexico’s momentum comes early in the tenure of a Trump administration vowing to take actions aimed at slowing car and truck imports coming to the U.S., with specific emphasis on products made in Mexico. While vehicle imports from some major markets—including Canada—declined in January compared with the same period a year earlier, the flow of Mexican-made vehicles increased 10%, according to U.S. trade data.
Mexico registered an unexpected trade surplus in February as growth in exports outpaced that of imports, thanks to higher oil prices and strong exports of manufactured goods. Auto exports, increasing 4.9%, were a contributing factor.
The data, published by WardsAuto.com, reveals General Motors Co., Fiat Chrysler Automobiles NV, Nissan Motor Co. and Volkswagen AG scheduled significantly more Mexican light-truck production over the period, helping the country’s auto plants post output increases at a time when the wider North American auto industry is paring back. Many plants in the U.S. and Canada have dialed back production of less popular passenger cars, such as the Chevrolet Malibu, resulting in layoffs at certain factories.
....
Write to John D. Stoll at john.stoll@wsj.com
Appeared in the Mar. 28, 2017, print edition as 'Mexico’s Vehicle Output Climbs.'