Can Trump’s fees be discharged from Mexico to Nissan production?

Can US President Donald Trump’s fees be expelled from Mexico? This is a lasting question after a series of conflicting statements this week from the company’s global and national leadership.

Nissan CEO Makoto Supreme on Thursday said that if the 25% of the fees were proposed, the Japanese vehicle manufacturer could be relocated from Mexico.

Subsequently, Nissan Mexico’s officials told reporters that there was no plans to put an end to local production activities, the company announced that it had promised Mexico.

“We have no information on moving our production activities to another country,” said Nissan Mexico newspaper El Financaro when he questioned the Supita’s statement.

“Worldwide, Nissan is taking steps to guarantee that our production markets and the needs of the customers are taking steps, while strengthening our portfolio’s value,” it added.

In 2024, Nissan coordinated its position as the head of the Mexican vehicle marketAccording to data from the National Statistical Institute, InEGI.

Japanese car company sold 255,116 vehicles in Mexico last year, which increased 5.8% over 2023. It refers to a 17% share in the Mexican market and runs the second year as the highest -selling car manufacturer in Mexico in Mexico.

In 2023, Nissan sold a total of 241,056 light vehicles in Mexico, reaching a market share of 17.7%. This number indicates a growth of 42.7% compared to 2022.

“(A automotive manufacturers) sells 1.5 million vehicles in the context of inflation 4.5% and interest rates rose to 10.5%. This highlights the industry’s setback, ”Rodrigo Senteno, CEO of Nissan Mexico, told reporters in January.

According to the online publication, Latin Times, Nissan is “analyzing” the opportunity to leave Mexico, and if Trump passes the threats of 25% for Mexican goods, the tax will be a significant challenge for Nissan’s profit.

The Auto Company has three plants in Mexico – two in the state of the state and one in the state of Morolos – exporting about 320,000 vehicles every year to the United States.

If the fees are implemented, it may be dramatic to affect Nissan’s profit, and the Topita said Trump’s threats of implementing new fees in Mexico’s steel and aluminum exports.

“If more fees are imposed, we must be prepared to change and other places will be a necessity to move products,” he said.

If Nissan decides to leave Mexico, it must identify alternative production sites that can adapt to its production requirements while maintaining cost efficiency.

According to the Merga 2.0 magazine, the United States includes possible places, where the company already operates manufacturing facilities in Smirna, Tennessee and Canton, Mississippi. Other possibilities are the expansion of functions in Asia or investing in European plants to compensate for potential losses from the US market.

Supita made these comments while presenting the company’s latest financial results. He also provided a renewal of Nissan’s restructuring program.

The CEO said the company would reduce global production by 20% – primarily obtained domestic competition in China – this year will eliminate 2,500 jobs. The dismissal dismissed 9,000 employees at the end of last year.

Nissan acknowledged the unstable nature of the Mexico situation and said they should be prepared for any event.

“A new situation is expanding and we must be flexible in our reply,” Nissan told Mexico L Finaminero.

Nissan sold 20,279 vehicles in Mexico in January, which increased by 1.5% by January 2024.

With reports from UniversalOvarian FinanceOvarian Merga 2.0Ovarian Latin Times And Mexico Business News