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Released April 04, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--If nothing else, President Donald Trump's talk of closing the U.S.-Mexico border has pointed to the strong cross-border links among several industries, particularly in the automotive sector. Industrial Info is tracking more than $32.7 billion in automotive sector project activity in the U.S., and more than $9.7 billion worth in Mexico.
According to news media reports, as of Tuesday, Trump appeared to have backed away somewhat from his threat to close the border in order to halt the flood of illegal immigrants into the U.S.
But his talk of a border shutdown has sparked a lot of comments about the potential consequences of such a closure on the industries that rely heavily on trade between the two countries. According to NBC News, about 37% of the imported parts used in U.S.-manufactured vehicles come from Mexico. This includes wiring harnesses, which are used on 70% of all vehicles made in the U.S. The U.S. imported $59.4 billion worth of Mexican-made auto parts last year, according to NBC News, while U.S. automakers and auto parts manufacturers sent $32.5 billion worth of parts and vehicles to Mexico.
Total trade through the El Paso, Texas, border port amounted to $81.9 billion in 2018, according to a report by the Federal Reserve Bank of Dallas on economic indicators in El Paso. U.S. auto sales are closely linked to the local economy, because roughly half of maquiladoras (exporting factories) in Juarez [Mexico] are auto related, the report said.
Kristin Dziczek, vice president for industry, labor and economics at the Center for Automotive Research (Ann Arbor, Michigan), was quoted in USA Today as saying a total border closure would cause the U.S. auto industry to shut down within days.
On Monday, the U.S. Chamber of Commerce warned that closing the U.S.-Mexico border "would inflict severe economic harm on American families, workers, farmers, and manufacturers across the United States. U.S. trade with Mexico exceeds $1.7 billion daily, and nearly half a million people legally cross the southern border every day as workers, students, shoppers, and tourists. Even threatening to close the border to legitimate commerce and travel creates a degree of economic uncertainty that risks compromising the very gains in growth and productivity that policies of the Trump Administration have helped achieve."
Industrial Info is tracking more than 300 active automotive sector projects in Mexico. In Apaseo El Grande, Guanajuato, construction of Phase 1 of Toyota Motor Corporation's (NYSE:TM) (Toyota, Japan) planned $1 billion automotive assembly complex is underway, with completion planned for second-quarter 2020. The complex will have a production capacity of 200,000 units per year. Click here for the projects that are tied to the complex.
In the U.S., one of the more substantial automotive projects now under construction is Continental AG's (Hanover, Germany) $1.45 billion passenger light truck and commercial vehicle tire manufacturing plant in Clinton, Mississippi. The plant is scheduled to start production in late 2019. For more information, see Industrial Info's project report.
In Greer, South Carolina, work is underway on BMW AG's (Munich, Germany) $600 million automotive assembly plant expansion. Production areas will be retooled and supporting equipment added to increase production capacity in phases over the next four years. The expanded plant will produce the BMW X3 sports utility vehicle, in addition to the X4, X5 and X6 vehicles that are already manufactured there. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
According to news media reports, as of Tuesday, Trump appeared to have backed away somewhat from his threat to close the border in order to halt the flood of illegal immigrants into the U.S.
But his talk of a border shutdown has sparked a lot of comments about the potential consequences of such a closure on the industries that rely heavily on trade between the two countries. According to NBC News, about 37% of the imported parts used in U.S.-manufactured vehicles come from Mexico. This includes wiring harnesses, which are used on 70% of all vehicles made in the U.S. The U.S. imported $59.4 billion worth of Mexican-made auto parts last year, according to NBC News, while U.S. automakers and auto parts manufacturers sent $32.5 billion worth of parts and vehicles to Mexico.
Total trade through the El Paso, Texas, border port amounted to $81.9 billion in 2018, according to a report by the Federal Reserve Bank of Dallas on economic indicators in El Paso. U.S. auto sales are closely linked to the local economy, because roughly half of maquiladoras (exporting factories) in Juarez [Mexico] are auto related, the report said.
Kristin Dziczek, vice president for industry, labor and economics at the Center for Automotive Research (Ann Arbor, Michigan), was quoted in USA Today as saying a total border closure would cause the U.S. auto industry to shut down within days.
On Monday, the U.S. Chamber of Commerce warned that closing the U.S.-Mexico border "would inflict severe economic harm on American families, workers, farmers, and manufacturers across the United States. U.S. trade with Mexico exceeds $1.7 billion daily, and nearly half a million people legally cross the southern border every day as workers, students, shoppers, and tourists. Even threatening to close the border to legitimate commerce and travel creates a degree of economic uncertainty that risks compromising the very gains in growth and productivity that policies of the Trump Administration have helped achieve."
Industrial Info is tracking more than 300 active automotive sector projects in Mexico. In Apaseo El Grande, Guanajuato, construction of Phase 1 of Toyota Motor Corporation's (NYSE:TM) (Toyota, Japan) planned $1 billion automotive assembly complex is underway, with completion planned for second-quarter 2020. The complex will have a production capacity of 200,000 units per year. Click here for the projects that are tied to the complex.
In the U.S., one of the more substantial automotive projects now under construction is Continental AG's (Hanover, Germany) $1.45 billion passenger light truck and commercial vehicle tire manufacturing plant in Clinton, Mississippi. The plant is scheduled to start production in late 2019. For more information, see Industrial Info's project report.
In Greer, South Carolina, work is underway on BMW AG's (Munich, Germany) $600 million automotive assembly plant expansion. Production areas will be retooled and supporting equipment added to increase production capacity in phases over the next four years. The expanded plant will produce the BMW X3 sports utility vehicle, in addition to the X4, X5 and X6 vehicles that are already manufactured there. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
