Sheinbaum Warns About Nissan’s Exit

Sheinbaum Warns About Nissan’s Exit
Nissan Could Lose Its National Market
Trump Threatens High Tariffs

Mexican President Claudia Sheinbaum warned this Friday that Japanese automaker Nissan could lose its national market if it decides to leave Mexico due to the 25% tariffs that Donald Trump has promised to impose on cars manufactured in the country.

Sheinbaum emphasized that foreign companies operating in Mexico, like Nissan, rely primarily on the local market for production.

«These are foreign-owned companies that present themselves as Mexican, but most of their vehicles are intended for national consumers, not for export,» she stated during her press conference.

Her remarks were a response to Makoto Uchida, President and CEO of Nissan, who said the company may consider relocating its production if Trump’s tariffs are enforced.

Sheinbaum Questions Nissan’s Possible Relocation and Promotes Hybrid Car Manufacturing in Mexico

Uchida stated that the company would have to prepare to shift vehicle production elsewhere if high tariffs are applied. Such a measure would impact the production of approximately 320,000 vehicles per year, which are currently exported from Mexico to the U.S..

However, Sheinbaum expressed skepticism about Nissan making such a move, highlighting that the Aguascalientes plant, one of Nissan’s largest facilities in Mexico, primarily serves the national market.

Additionally, the president promoted Mexico’s interest in having Nissan manufacture a hybrid vehicle in the country, a model currently only produced in Japan, featuring an 80% electric motor and 20% internal combustion.

«We would like that vehicle to be produced in Mexico to reduce pollution,» she added.

Meanwhile, President Trump has reaffirmed that cars made in Mexico and sold in the U.S. will face high tariffs.

Arguing that new plants are being built in the U.S. to manufacture vehicles for the domestic market.

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These tariffs could significantly impact Mexico’s automotive industry, a sector that accounts for nearly 4% of the country’s GDP and makes up one-fifth of Mexico’s manufacturing economy.

This industry has already seen a decline in vehicle exports, with a 13.74% drop in January compared to the previous year.

Sheinbaum Optimistic About Mexico’s Ability to Adapt to Trump’s Tariff Threats

Claudia, Sheinbaum, Mexico, Tariffs, Nissan,Sheinbaum Warns About Nissan’s Exit — Sheinbaum Warns About Nissan’s Exit – PHOTO: Screenshot – YouTube Mananera

Despite concerns, Sheinbaum expressed optimism about Mexico’s ability to adapt and handle the challenges posed by U.S. trade policies.

She stressed that the economic relationship with the U.S. remains strategic, and that Trump’s protectionist measures could have negative consequences for both Mexico and U.S. companies that depend on Mexican manufacturing.

The future of Mexico’s automotive industry will depend on the evolution of trade negotiations and whether a balance can be struck between U.S. market protection and the competitiveness of Mexican companies.

SOURCE: EFE / Infobae