Toyota has confirmed that it will invest 1.45 billion dollars in Mexico. The resources will be used for the sustainable modernization of its factories located in the states of Baja California and Guanajuato. The decision was announced after Donald Trump’s electoral victory in the United States. The politician has said that during his second term he will impose new tariff burdens on automotive imports and provide incentives to stop foreign financing in Mexico.
The Ministry of Economy (SE) announced the shipowner’s plans through a statement. He explains that the objective of the capital injection is to reinforce the infrastructure of the plants that the firm has installed in the country. The complexes will be in charge of the production of the new generation of the pick-up Tacoma and Tacoma hybrid electric. The project will generate around 1,600 new jobs. The agency assures that Toyota has invested nearly 2,000 million dollars in the last 22 years to strengthen its presence in the Mexican market.
Marcelo Ebrad, head of the SE, states that “the federal government is committed to providing confidence to investors and promoting, through [acuerdos comerciales]development with well-being in the country. “We will continue working to attract more resources and generate quality jobs.”
Luis Lozano, president of Toyota Mexico, notes that “certainty and stability are fundamental pillars for the automotive industry to continue being a key driver in national development, generating jobs and talent, while moving towards electrification and new mobility challenges. ”.
The Japanese manufacturer began operations in Mexico in 2002. It has 98 points of sale in the country through which it markets 18 car models. Its manufacturing division, known as Toyota Motor Manufacturing, has complexes in the towns of Tijuana in Baja California and in Apaseo el Grande, Guanajuato.
Donald Trump’s threats do not stop Toyota in Mexico
The decision of the company led by Lozano has been released a few days after Donald Trump’s victory in the United States presidential elections. The Republican promised during his campaign that he would rescue the automotive industry “from collapse.” Its strategy includes the review of the Treaty between Mexico, the United States and Canada (T-MEC), tariffs of up to 200% on imports of vehicles manufactured in Mexican territory and a series of tax concessions for companies to move their manufacturing centers to the American nation.
China’s advance is a concern for Trump. The businessman argues that Asian automakers are building production complexes in Mexico to take advantage of the conditions of the T-MEC and sell large quantities of cars in the United States. “We are not going to let these vehicles enter our country,” he said. Analysts warn that the virtual president’s policies could increase consumer prices and would stop foreign investments in the Mexican Republic.
Mexico has captured 17% of Chinese investments that come to North America, according to calculations by the consulting firm Savills. The automotive sector was one of the most benefited with more than 16.88 billion dollars. The amount is four times higher than what is recorded in other economic activities. The industry has demonstrated significant regional integration under the USMCA framework. It exported nearly three million cars to the United States last year. About half of the transactions were handled by Detroit-based manufacturers General Motors, Ford and Stellantis.
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