USMAC Watch: news by Hebei longsheng
| USMCA Watch: Honda, Autoliv may have work to do as uniform regulations arrive The U.S. government has published detailed regulations for the autos industry in order to implement the U.S.-Mexico-Canada-Agreement (USMCA) from July 1. These "uniform regulations" define how to calculate the regional value-added per vehicle that allows them to be transferred across North America without tariffs. One requirement relates to the amount of steel "melted and poured" in the region which can complicate the entire supply chain. The changes could require car companies to review their metals supplies, particularly into Mexico. Panjiva’s analysis shows total steel and aluminum imports to Mexico by the top 17 assemblers and top 20 component makers fell by 11.3% year over year in Q1. There’s little sign of a shift to North America in the aggregate so far with imports from the U.S. and Canada to Mexico down by 7.7% in Q1. Imports to Mexico from outside the U.S. and Canada slumped 38.5% in April in part due to COVID-19. There has been a marked divergence at the corporate level recently, suggesting a similarly wide range of changes as the uniform regulations are rolled out. Among the assemblers Honda and Hyundai have actually increased their imports of steel and aluminum from outside North America by 3.2% and 3.9% respectively in the 12 months to April 30 while Ford’s fell by 11.1%. For the component firms, Autoliv’s imports rose by 2.9% and Continental’s dropped by 37.2%. By Hebei Longsheng Metals & Minerals Co,. Ltd. |
