Mexico Border Shutdown Could Devastate Auto Industry
April 3, 2019—A U.S.-Mexico border shutdown would be “devastating” to American auto companies, their workers, parts suppliers and regional economies throughout the Midwest, Texas and California, according to a report from The Detroit Free Press.
Not only do parts come into the U.S. from Mexico, but 37 percent of U.S.-made parts ship to Mexico for further steps in vehicle manufacturing, according to the report. A disruption in the supply chain risks shutting down factories and bigger production operations that can’t restart.
What is imported from Mexico has increased over the years, from labor-intensive items such as wire harnesses and cut-and-sewn seat covers to almost every type of component, including engines, axles and transmissions.