Mexico Border Shutdown Could Devastate Auto Industry
A U.S.-Mexico border shutdown could be significantly harmful to American auto companies, their workers, parts suppliers and regional economies throughout the midwest, Texas and California.
April 3, 2019
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 TheDetroit 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.
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