European, Asian automakers voice against new NAFTA automotive rules
A group of foreign automakers with plants in the U.S. voiced their concern regarding a request by the Trump administration to raise the amount of local content in North American-made vehicles, Reuters reported.
In a letter sent by “Here for America” to key U.S. lawmakers, the group of companies––including Toyota, Volkswagen and Hyundai, among others––claimed that some foreign brand automakers with smaller North American manufacturing footprints and fewer U.S. research and development staff may have difficulty meeting the more stringent content requirements for years.
Meanwhile, the American Automotive Policy Council, which represents Detroit’s Big Three automakers is “encouraged by the direction of the discussions,” said Matt Blunt, who heads the trade group.
According to Reuters, the United States and Mexico are closing in on a bilateral deal on autos that would increase the requirement for North American content in regionally made vehicles to at least 70% from the current 62.5%. The deal is also expected to require that some 40% of the value come from high wage locations paying at least US$16 an hour, meaning the United States and Canada.