Japan-based Mabuchi Motor sets plan to face protectionist policies

As Japan’s Mabuchi Motor sets to start mass production in Mexico by the end of the year, company officials revealed there’s no plans to change strategies even though U.S. President-elect Donald Trump has threatened to implement a protectionist policy.

Mabuchi produces small-to medium-sized electric motors mainly for automotive use, such as for power windows. It already has production bases in Poland, China and Vietnam.

The company is scheduled to start supplying products from the Aguascalientes plant to U.S. automakers next year, a key risk is U.S. President-elect Donald Trump, whose campaign promises could disrupt the company’s plan.

After Trump’s surprise victory, the company has not changed its strategy but will keep an eye on any moves the incoming administration makes, a Mabuchi official said to Nikkei Asian Review.

“We’ll need to closely monitor any potential impact on the supply chain,” the executive said.

Even if Trump follows through with protectionism, Mabuchi has ample cash to fall back on. Such robust financial health would even make it possible for the company to build a new plant in the U.S., if it wished, the official said.

MexicoNow

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