Head of auto parts manufacturers in Mexico foresees 10% growth under USMCA terms
The demand for greater regional content in the cars produced under the new USMCA trade deal will increase the production of auto parts manufacturers in Mexico by some US$ 10 billion a year in the midterm, said Oscar Albin, president of the National Auto Parts Industry (INA by its acronym in Spanish).
The pact sets a period of five years from when it enters into force so that the regional content in cars increases to 75% from current 62.5%.
“The automotive companies, especially Asian and European ones, will have to invest more in tooling, more in North American components, to comply with the required contents,” said Albin, in an interview with El Financiero.
The official expects a growth close to 10% both in the value of the Mexican production of auto parts and in employment for the next three years, almost in the same proportion in which the regional content of the cars will have to increase.
“If today in Mexico we are producing practically US$ 90 billion, we will be close to US$ 100 billion in the next three years. The same goes for the United States and Canada,” Albin added.