FACTBOX: From Audi to Toyota, duties could upend Mexico output

5 years, 6 months ago - 4 June 2019, Automotive News
FACTBOX: From Audi to Toyota, duties could upend Mexico output
President Donald Trump said on Thursday a tariff of 5 percent would be imposed on all goods coming from Mexico, increasing gradually each month until it reaches 25 percent on Oct. 1, unless Mexico takes immediate action to curb illegal immigration.

Such a move would likely hit the auto industry looking particularly vulnerable. Vehicles and auto parts comprised Mexico's biggest export item to the United States in 2018, totalling $93.3 billion, according to the U.S. Census Bureau.

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.

A look at Mexican production and export figures for automakers in 2018, supplied by the Mexican Automotive Industry Association:

General Motors

Production: 834,414 vehicles. Exports: 811,954 vehicles.

The largest automaker in Mexico, with 14 manufacturing facilities.

Nissan Motor

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

Production: 639,022 vehicles. Exports: 630,967 vehicles.

Volkswagen Group

Production: 435,373 vehicles. Exports: 377,437 vehicles.

Daimler

The group last year opened the COMPAS plant in Aguascalientes, which it jointly operates with Renault-Nissan, to produce the A-class sedan. Originally the plant targeted annual production of up to 230,000 vehicles, but initial output has faced technical difficulties.

Kia Motors

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

Production: 280,499 vehicles. Exports: 273,009 vehicles.

Toyota Motor

Production: 191,978 vehicles. Exports: 187,569 vehicles.

Audi

Production: 173,098 vehicles. Exports: 172,232 vehicles.

Mazda Motor

Production: 149,589 vehicles. Exports: 137,463 vehicles.

Honda Motor

Production: 147,158 vehicles. Exports: 130,542 vehicles.

Auto suppliers

Japan's Denso Corp. and Aisin Seiki Co. have a manufacturing presence in Mexico.

Germany's Thyssenkrupp generates about 1 billion euros ($1.11 billion) of sales in Mexico, where it employs 4,300 staff. It produces steering systems, crankshafts, springs and anti-roll bars for the car industry.

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