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Home » Nafta Uncertainty Hasn’t Stopped Mexico’s Car Manufacturing Cities From Thriving

Nafta Uncertainty Hasn’t Stopped Mexico’s Car Manufacturing Cities From Thriving

During his campaign, Donald Trump called American investment in San Luis Potosi, Mexico, “an absolute disgrace.” He lobbied Ford to stop building a $1.6bn factory here, and the company acceded.

August 10, 2018
The Washington Post

It appeared that this colonial capital, booming thanks to auto companies lured by the North American Free Trade Agreement, could be undone by the Trump administration’s efforts to gut one of the world’s most profitable free-trade zones.
But after more than a year of strained Nafta negotiations, the unemployment rate here is approaching zero. On the horizon, a sprawling BMW factory glitters, nearly completed, in the desert sun. Recruiters stalk the main plazas with pleading signs: “We are searching for talent.”
Even as Nafta talks continue, Mexican cities like San Luis Potosi continue to thrive, a sign of how deeply entrenched the U.S. automotive industry — driven primarily by low labor costs — is in Mexico.
“The feeling we are receiving from our customers is that nothing is going to change,” said Jorge Luis Gonzalez, the manager at a factory owned by Samvardhana Motherson Group and producing hundreds of thousands of rearview mirrors every year for more than a dozen major automobile companies.
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Global Supply Chain Management Global Trade & Economics Quality & Metrics Supply Chain Security & Risk Mgmt Automotive
KEYWORDS Automotive Global Supply Chain Management Global Trade & Economics North America Quality & Metrics SC Security & Risk Mgmt
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