-elect Donald Trump on Monday pledged tariffs on the United States' three largest trading partners - Canada, Mexico and China - detailing how he will implement campaign promises that could trigger trade wars.Honda Motor sends 80% of its production in Mexico to the U.S. market and its chief operating officer Shinji Aoyama warned earlier this month if the U.S. were to impose permanent tariffs on vehicles imported from Mexico, it would have to think about shifting production.
Nissan Motor has two plants in Mexico where it makes the Sentra, Versa and Kicks models for the U.S. market. It produced nearly 505,000 vehicles in Mexico in the first nine months of this year. The company does not disclose how many of those were exported to the U.S. market.It sold more than 230,000 of the Tacoma in the U.S. last year, representing about 10% of its total sales in that market. Toyota used to produce the Tacoma in the U.S.
South Korea's Kia Corp has a factory in Mexico that makes its own vehicles and a small number of Santa Fe SUVs for its affiliate Hyundai Motor for U.S. exports.Tesla encouraged its Chinese suppliers to set up plants in Mexico in 2023 to mainly supply to the U.S. automaker's planned Gigafactory in Mexico.
Tesla originally planned to start production in Mexico in early 2025 but has largely walked away from that goal and shifted to an expansion plan with its Texas plant.Some Chinese car component makers such as seat maker Yanfeng Automotive Interiors have been producing in Mexico for years to supply to automakers including General Motors and Toyota, which had relocated their capacity to Mexico for lower costs.
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