The North American automotive industry faces several challenges, including increased competition from China, according to the Mexican Automotive Industry Association (AMIA).

This assessment was presented as part of a letter sent by AMIA to the White House Trade Representative (USTR) in the context of consultations for the review of the USMCA.

North American automotive industry 

AMIA brings together OEMs based in Mexico. It also contributes 4.5% of GDP, 32% of exports, and more than 3.5 million jobs. It is an economic pillar. And, for this reason, any change in its environment impacts the country.

However, the association warns of growing risks. Trade unpredictability and tariffs create pressure. They also disrupt supply chains and make operations more expensive. Added to this is economic uncertainty, which limits demand and slows investment decisions.

Thus, the North American automotive industry is moving forward, but cautiously. Each challenge influences its competitiveness. And each adjustment redefines the sector’s ability to sustain growth in an increasingly demanding global market.

“Pressures on demand are further amplified by growing global competition, particularly as a result of China’s emergence as a global player in light vehicle production. In addition, rising production costs, driven by increases in labor prices, the transition to new technologies, raw materials, and energy, further reduce margins in the sector,” he said.

These factors jeopardize the sector’s competitiveness and leadership in the face of technological and market changes. Therefore, it is essential to restore certainty. In addition, AMIA insists on applying the current USMCA regulations and strengthening regional integration.

In its view, this should be the central focus of the upcoming review. Only then will the North American industry be able to take advantage of its historical complementarities and sustain growth in line with new global demands.

Regional integration

AMIA emphasized that supply chains are the engine of automotive growth in North America. They function as an integrated system that moves parts and vehicles across borders. Thus, they have driven production, employment, and investment for decades.

In addition, the proximity between suppliers in Mexico, the United States, and Canada provides speed and flexibility. This allows automakers to reduce costs, improve deliveries, and react quickly to market changes. This dynamism sustains the sector’s global competitiveness.