Automobile Industry in Mexico is Unaffected by Donald Trump’s Policies
According to business experts, analysts, diplomats, the trade policies pursued by US President Donald Trump didn’t affect Automobile manufacturers
Toyota vice president Nobuzo Jun Umemura said that for manufacturing Corolla model vehicles the plant will be built in Mexico which was conceived 10 years ago, for that the policies implemented by the US president will neither change location and projection.
He also said that the new Toyota operation in Mexico is projected to produce 200,000 units per year which will be starting in in July 2019in which it creates 1500 jobs. On the other side, the new plant will be taking 20 new suppliers to Mexico, as a return it creates around 10,000 more jobs.
Umemura said that this will be going to be beyond the US administration, referring it to Toyota’s long-term investment plans. The plan for the construction of the plant has already begun in November 2016 which was approved last January. The investment planned is around USD $1 billion, therefore the investment for the investment in the United States would be USD $10 billion.
The diplomat said that the Mexico’s productive advantages and strengths will not change irrespective of what happens in the United States
In the meantime, president of SAI Consultores, Jaime Serra Puche stated that manufacturers make their auto parts orders four years in advance in the automobile industry. So during Donald Trump government the suppliers would not suffer on major modifications.
In the United States, Toyota has invested USD $21.9 billion where it has ten production plants which has dealerships of 1,500 and 136,000 jobs.
Diplomats, experts and businessmen agreed on their opinions in an event which took place in Mexico by the Oxford Business Group, they also expressed the importance of productive coordination, integration and commercial coordination that should be exists between Mexico and the United States.