Auto parts production could set a record despite NAFTA uncertainty

July 12, 2018

Oscar Albin of the National Auto Parts Industry.

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.