Japan auto parts supplier: Mexico expansion on hold pending NAFTA
10/07/2018 03:44
NAGOYA, July 10 (Reuters) - Japanese auto components
supplier Jtekt Corp 6473.T said it was holding off on
expanding production in Mexico, awaiting the outcome of talks
over the North American Free Trade Agreement, known as NAFTA.
The auto industry has been plagued by uncertainty since U.S.
President Donald Trump last year launched a renegotiation of
NAFTA, seeking to repatriate manufacturing jobs to the United
States. Jtekt President Tetsuo Agata said prospective automaker
clients were waiting for the outcome of the talks before making
new decisions on their Mexico operations.
"They are watching the NAFTA situation carefully. So we also
have to hold off on new production plans," he told reporters at
its Nagoya headquarters. Jtekt is a Toyota 7203.T group
supplier which manufactures vehicle steering systems.
(Reporting by Ritsuko Ando; Editing by Muralikumar
Anantharaman)
((Ritsuko.Ando@reuters.com; +81 3 6441 1743; Reuters Messaging:
ritsuko.ando.thomsonreuters.com@reuters.net))