Wednesday , March 3 2021

The economy gives 12 carmakers an additional transition period for T-MEC

Most car companies residing in the country have received approval from the Department of the Economy (SE) for a longer transition period to adapt to the new measures required by the agreement between Mexico, the United States and Canada (T-MEC).

In this way, vehicle assemblers will have an additional 2 years, or 5 years instead of 3, to meet the requirements of regional content and wages for their workers.

The Federal Agency detailed that companies that responded positively to their requests to use the alternative transition regime were as follows:

• Tesla, Inc.
• Volkswagen de México, SA de CV
• Volvo Car USA
• FCA México, SA de CV
• Hyundai Motor America
• Mazda Motor de México, S. de RL de CV
• Toyota Motor de México, S. de RL de CV
• Kia Motors Mexico
• Kia Motors Manufacturing Georgia, Inc.
• Nissan Mexicana, SA de CV
• Ford Motor Company SA de CV
• Collaborative production plant Aguascalientes, SAPI de CV (alliance between Renault-Nissan and Daimler)

He points out that there is neither General Motors nor Honda among the car companies.

Also read: Toyota is looking for new suppliers in Mexico to adapt the T-MEC

For free trade in light vehicles in the region, the T-MEC sets 75% of the regional content, above 62.5% set in the previous North American Free Trade Agreement (NAFTA).

It also requires that 40% of the value of a vehicle must be produced by workers earning a salary of at least $ 16 per hour.

Don’t miss out: Autoparts will support the industry to respect T-MEC

Last June, less than a month after T-MEC began implementing, then-President of the Mexican Automobile Industry Association (AMIA) Fausto Cuevas predicted that virtually all car companies would request their inclusion in an alternative transitional regime to have more time to work towards new trade agreement.

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