USA AUTO MAKERS JUGGLE USMCA COMPLIANCE STRATEGIES TO AVOID MARKET DEPRESSING COST INCREASES
October 2nd, 2020
USA automotive manufacturers are facing some tough choices when implementing the United States-Mexico-Canada Agreement (USMCA), which entered into force on July 1, to avoid its pressure on costs being reflected in showroom price increases.
The new deal, which replaces the North American Free Trade Agreement (NAFTA), requires US, Mexican and Canadian auto manufacturers to increase their USMCA-bloc sourcing to ensure that 75% of a vehicle's parts are made in a signatory country to benefit from the free trade provisions. This is up from 62.5% under NAFTA.
And 40% ...
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