![]() ![]() ![]() You may have a screw produce at a plant, say, in Indiana that's shipped across the border and used in a module that then is shipped across the border again and installed into a bigger part, installed in something else and then finally returned to the United States and assembled into a Ford F-Series. You can take it down literally to the nuts and bolts. Is that a typical supply chain in North America?ĮISENSTEIN: Oh, that's very much the case. ![]() But if you look at the components, it's made using aluminum from Quebec, windshield wipers from Mexico, transmissions from the U.S. It's called one of the most made-in-America vehicles. Let's talk about the supply chain and consider one specific vehicle in particular, the Ford F-150 pickup truck. And we might wind up actually seeing some jobs go to Mexico before this goes into effect.īLOCK: Interesting. You move things around when you're about to sign an armistice over war. You know, it's one of those things you do. There's some indication that automakers and auto parts suppliers could wind up rushing to put new plants down in Mexico before the deal officially takes effect. But one thing that I'm particularly concerned about from what I've gotten out of the deal so far is that we'll probably also see prices for American consumers go up on cars over the next few years.īLOCK: Does it seem to you that they're kind of tinkering around the edges? I mean, when they're talking about things like increasing the percentage of parts of a vehicle that have to be made in the United States, are these fundamental changes or just a way for the administration to say, hey, we took a hard line, and we got a new deal?ĮISENSTEIN: I think a lot of it is to say, we took a hard line, and look what we did. There are going to be new caps, new rules - supposedly going to help drive a few more jobs back to the United States. And I think we're still trying to figure out exactly what the negotiations so far have resulted in when it comes to Mexico. Unfortunately, we still can't tell what the final results will be because we don't have a deal, from what we hear, with Canada. Paul, welcome to the program.īLOCK: What do the proposed changes to NAFTA mean for the auto industry overall?ĮISENSTEIN: Well, I think the best thing that you can say about it is that it will prevent the Trump administration from eliminating NAFTA entirely. It's a website that covers the auto industry. One area of the trade deal concerns automobiles, which are manufactured through a complex web of parts suppliers and employees in Canada, the U.S. A Friday deadline set by the Trump administration to strike a deal renegotiating NAFTA came and went, with talks set to resume this week. ![]()
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