Sunday, June 16, 2024

Auto parts production could set a record despite NAFTA uncertainty

In spite of uncertainty over the North American Free Trade Agreement (NAFTA), the auto parts manufacturing industry could set a production record this year.

National Auto Parts Industry president Oscar Albin estimated that the value of parts manufacturing will come close to reaching US $90 billion.

It would not be a big increase over last year’s $88 billion but Albin thought it a good one given current conditions. He also said foreign investment continues to come into the country.

In the first half of the year foreign investors — mostly from the United States, Japan and Germany — invested close to $1.4 billion in the sector.

For the year, the industry expects total investment to reach between $3 billion and $4 billion, down somewhat from last year’s $6 billion.

Albin said there has been no decline this year in production for either the domestic or export market and new factories are still being built.

The industry is hopeful that a new NAFTA can be negotiated before the end of the current government’s term in November. Otherwise, Albin said, it would become complicated.

Source: Milenio (sp)

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