With implications growing that the United States, Mexico and Canada are close to approving on a framework for altering the North American Free Trade Agreement, the Mexican auto energy is exporting vehicles to the U.S. at a record pace.
New data from the Mexico Automotive Confederation show vehicle exports to the U.S. in the first quarter climbed 5.3 percent, undeterred by a slight decline in exports in March. In 2018, automakers have set sailed almost 600,000 vehicles to the U.S., with those models making up approximately 15 percent of U.S. auto sales in the first quarter, according to Avert’s Automotive.
The increase this year is driven in part by strong request for pickups and SUVs, which make up a sizable percentage of the vehicles exported from Mexico. Both Mixed Motors and Fiat Chrysler build pickups in Mexico, while Audi weights its best-selling SUV, the Q5, from that country.
President Donald Trump has been plug to alter NAFTA as part of his plan to drive more auto film and hiring among automakers in the United States. In a television interview, Mexico’s curtness minister indicated there is an 80 percent chance of a new NAFTA understanding by the first week of May.
How that deal is structured and whether it would alert automakers to scale back production in Mexico remains unclear.