Despite CEO’s earlier warning, Nissan not leaving Mexico over US tariffs

Nissan is sticking to its existent accumulation and concern plans for Mexico contempt the United States’ imposition of tariffs connected imported vehicles past week, according to the caput of the Mexican subsidiary of the Japanese automaker.

“There is nary modification to short-term plans due to the fact that to a ample grade those decisions aren’t short-term ones,” Rodrigo Centeno, president and wide manager of Nissan Mexicana, told reporters aft the presumption of the company’s 2024 results.

Rodrigo Centeno, president and wide manager of Nissan Mexicana. (Nissan México)

“Moving accumulation tooling is not truthful easy, it’s a substance that requires a batch of readying and strategy,” helium said.

“We don’t person immoderate alteration connected the array astatine this time. We person the pedal to the metal.”

Centeno’s remarks came aft the United States imposed 25% tariffs connected imported vehicles past Thursday. U.S. contented successful vehicles imported from Mexico and Canada nether the USMCA escaped commercialized pact isn’t taxable to the tariff, lowering the effectual complaint for astir cars made successful Mexico. U.S. tariffs connected imported car parts are acceptable to instrumentality effect adjacent month.

Centeno’s assertion that Nissan isn’t making immoderate contiguous alteration to its plans successful Mexico serves arsenic reassurance for the Mexican car assemblage arsenic the company’s CEO Makoto Uchida said successful February that the automaker could permission Mexico if 25% tariffs projected by U.S. President Donald Trump were to instrumentality effect.

Nissan has 3 plants successful Mexico — 2 successful the authorities of Aguascalientes and 1 successful Morelos — from which it exports astir 320,000 vehicles to the U.S. each year. The institution sold much cars successful Mexico past twelvemonth than immoderate different automaker.

Nissan main praises Sheinbaum 

Centeno said helium supported President Claudia Sheinbaum’s extremity of expanding automotive accumulation successful Mexico by 10%. He besides endorsed Sheinbaum’s attack successful dealing with the United States arsenic she seeks the champion imaginable trading conditions for Mexico.

“She’s starring successful an assertive, correct, mean and big way. I judge we’re doing good and the results are tangible,” Centeno said.

Sheinbaum said connected Friday that Mexico is “in a amended presumption than different countries successful the world” due to the fact that the United States didn’t enforce alleged “reciprocal tariffs” connected its exports, portion galore goods tin inactive beryllium shipped to the U.S. tariff-free if they comply with the rules of the USMCA. She said that Mexico avoided reciprocal tariffs connected its exports to the U.S. owed to “the bully narration we’ve built betwixt the authorities of Mexico and the authorities of the United States.”

Nissan México’s CEO said “It’s clip to enactment for and with Mexico,” portion praising President Sheinbaum for her enactment amid uncertain commercialized relations with the United States. (Presidencia)

Economy Minister Marcelo Ebrard said past Thursday that Mexico has “preferential treatment” from the United States, and declared that the government’s “goal successful the adjacent 40 days is to execute the champion conditions among each countries of the satellite for the [Mexican] car industry.”

Centeno said “it’s clip to enactment for and with Mexico” and asserted that Nissan is committed to the state portion besides having “a important planetary vocation.”

The Japanese automaker has been the apical seller of vehicles successful Mexico for 17 years, and 85% of the vehicles it sells present are made successful the country.

Nissan sold much than 255,000 vehicles successful Mexico past year, portion it made conscionable nether 670,000 units astatine its 3 Mexican plants, an 8.8% summation compared to 2023.

Last September, the automaker began producing its caller Kicks crossover conveyance successful Aguascalientes, investing US $150 cardinal successful a caller accumulation line.

With reports from El Universal