• PREDICTION: Most automakers in North America could likely be petitioning for alternative staging regimes by July 1st to meet the new rules of origin under the US, Mexico and Canada trade agreement (USMCA), the Mexican auto industry predicts.
• PRESSURE: Three weeks before the USMCA enters into force, the Mexican car sector believes almost all producers will present plans to increase from 3 to 5 years the phase-in period to comply with the new requirements of 75% regional value content and 40% high-wage North American labor.
• INDUSTRY: “Practically all light vehicle manufacturers would request an alternative staging regime”, said Fausto Cuevas, head of Mexico’s Automotive Industry Association (AMIA). Last week, authorities in North America presented the uniform regulations to comply with the USMCA rules of origin.
• EXPORTS: As the car industry prepares for USMCA’s entry into force, Mexican plants are coming out of several weeks of shutdown due to the coronavirus emergency. The world’s fourth largest car exporting country, Mexico saw exports plummet a record 95.1% in May.
