Factbox: Global car industry in firing line of Trump's tariff threats vs Mexico, Canada

Autoliv

30/01/2025 10:26

Jan 30 (Reuters) - U.S. President Donald Trump has
pledged to place 25% tariffs on imports from Mexico and Canada
from Feb. 1 if the two countries are not judged to be doing
enough to stop the flow of fentanyl into the United States.
    
Around 90% of auto exports from both Mexico and Canada go to the
U.S., according to the Mexican Automotive Manufacturers' 
Association (AMIA) and the Canadian Vehicle Manufacturers'
Association.
    
German automakers, of which Volkswagen would be most affected,
have warned against the tariffs, saying they would cause
inflation for consumers. 
 
Here are the automakers that would be affected, in alphabetical
order:
    
AUDI
Volkswagen's  VOWG_p.DE  Audi plant in San Jose Chiapa, Mexico,
makes the Q5, employing just over 5,000 people. It produced
nearly 176,000 cars in 2023, its website showed. In the first
half of 2024, nearly 40,000 were exported to the U.S., according
to Mexico's AMIA.

BMW
BMW's  BMWG.DE  plant in San Luis Potosi, Mexico, produces the 3
Series, 2 Series Coupe and M2, with nearly all output going to
the U.S. and other markets worldwide, according to the carmaker.
From 2027, it will produce the all-electric Neue Klasse model
line.

FORD
Ford  F.N  has three plants in Mexico: its Chihuahua engine
plant, and two assembly plants in Cautitlan and Hermosillo. 
    It exported just under 196,000 cars from Mexico to North
America in the first half of 2024, with 90% of vehicles going to
the U.S., according to Mexico's AMIA.
    In Canada, it has an assembly plant in Oakville where it
plans to produce a larger, gas-powered F-Series pickup truck
from 2026. 
 
GENERAL MOTORS
GM  GM.N  imported roughly 750,000 vehicles from Canada or
Mexico in 2024 to the U.S., with most manufactured in Mexico,
according to business analytics firm GlobalData.
    They include some of GM’s most popular vehicles, including
the Chevy Silverado, GMC Sierra full-sized pickups, and
mid-sized SUVs.
    GM's Mexican plants also build two of its critical new
electric vehicles, battery-powered versions of its Equinox and
Blazer SUVs. 
    In Canada, GM operates three plants, producing electric
vans, the Chevrolet Silverado Heavy Duty truck, and the V8
engine and dual clutch transmission for shipment worldwide.

HONDA MOTOR
Honda Motor  7267.T  sends 80% of its Mexican output to the U.S.
market. It warned on Nov. 6 that it would have to consider
shifting production if the U.S. imposed permanent tariffs on
Mexican imports.

JAC MOTORS
JAC Motors  600418.SS  assembles JAC brand vehicles via a joint
venture with Mexican firm Giant Motors. 
    
KIA CORP
South Korea's Kia Corp  000270.KS  has a factory in Mexico that
makes its own vehicles and some Santa Fe SUVs for its affiliate
Hyundai Motor  005380.KS  for export to the United States.

MAZDA
Mazda  7261.T  exported around 120,000 vehicles from Mexico to
the United States in 2023, but has said it may reconsider
further investments if tariffs are imposed.

NISSAN MOTOR
Nissan Motor  7201.T  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 2024.

STELLANTIS
Stellantis  STLAM.MI  operates two assembly plants in Mexico:
Saltillo, which makes Ram pick-ups and vans, and Toluca, for the
Jeep Compass mid-sized SUV. 
    The Franco-Italian-American group also owns two assembly
plants in Ontario, Canada: Windsor, where it makes Chrysler
models, and Brampton, currently under retooling and scheduled to
resume production in 2025 with a new Jeep model.

TOYOTA MOTOR
Toyota Motor  7203.T  builds its Tacoma pick-up truck at two
plants in Mexico. It sold more than 230,000 of them in the U.S.
in 2023, representing about 10% of its total sales in that
market. Toyota used to produce the Tacoma in the U.S. but now
ships all of them from Mexico.

VOLKSWAGEN
Volkswagen's factory in Puebla is the largest auto plant in
Mexico and one of the largest in the Volkswagen Group, according
to the carmaker's website. Nearly 350,000 cars were made there
in 2023, including the Jetta, Tiguan and Taos, all for export to
the U.S.
    In Canada, Volkswagen is building a battery gigafactory in
St. Thomas, Ontario, investing up to C$7 billion ($4.9 billion)
with a view to use the batteries for cars it sells in North
America. Production is expected to begin by 2027.

AUTO SUPPLIERS

AUTOLIV
Sweden's Autoliv  ALIVsdb.ST , the world's largest maker of
airbags and seat belts, said it employs around 15,000 staff in
Mexico.

MICHELIN
Tyre maker Michelin  MICP.PA  has two plants in Mexico -
Queretaro and Leon - and three in Canada: Pictou, Bridgewater
and Waterville.

YANFENG
Chinese seat maker Yanfeng Automotive Interiors supplies
automakers including General Motors and Toyota from its plants
in Mexico.

OTHERS
Other part makers with plants in Mexico serving automotive
production for the U.S. market include Italian tyremaker Pirelli
 PIRC.MI , Italian premium brakes maker Brembo  BRBI.MI  and
Italy's Eurogroup Laminations  EGLA.MI .
    Eurogroup Laminations, which counts Tesla  TSLA.O  among its
clients, specialises in stators and rotors, two key components
of electric motors and generators.
    U.S. automaker Tesla encouraged its Chinese suppliers to set
up plants in Mexico in 2023 to supply the factory it was
planning to build in the country from early 2025, but its plans
have not materialised.
    ($1 = 1.4408 Canadian dollars)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GM and other US automakers would take big hit from Trump tariffs
   https://www.reuters.com/business/autos-transportation/gm-other-us-automakers-would-take-big-hit-trump-tariffs-2024-11-26/
German carmakers say Trump tariffs would hurt US consumers,
industry    https://www.reuters.com/business/autos-transportation/german-carmakers-say-trump-tariffs-would-hurt-us-consumers-industry-2025-01-21/
FACTBOX All of Donald Trump's tariff threats    https://www.reuters.com/world/us/all-donald-trumps-tariff-threats-2025-01-28/
U.S. firms lead car exports from Mexico to North America    https://reut.rs/3OrmxnX
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Victoria Waldersee in Berlin, Daniel Leussink and
Maki Shiraki in Tokyo, Heekyong Yang in Seoul, Zhang Yan and
Brenda Goh in Shanghai, Wen-Yee Lee in Taipei, Christoph Steitz
and Helen Reid in London; Paolo Landini in Gdansk, Giulio
Piovaccari and Elisa Anzolin in Milan, Gilles Guillaume in
Paris, Marie Mannes in Stockholm. Writing by Miyoung Kim,
Victoria Waldersee and Josephine Mason. Editing by Mark Potter)
 ((Victoria.Waldersee@thomsonreuters.com;))