Mexico Flips The Script By Limiting Car Imports From U.S.
While Trump wants production in the US, Mexico moves to boost domestic sales
The news has been all over President Trump wanting automakers to produce in America instead of Mexico. This move puts strain on economic relations between the two countries and tensions are rising. This is why Mexican lawmakers are moving to drastically reduce US used car imports. The intention is to boost domestic sales and protect their own economy as pressure mounts to move production out of the country.
Reducing Used US Imports To Boost Domestic Sales
South of the border, there is confidence that this move will increase the overall quality of car sales in Mexico. Increased sales at domestic dealerships will help the country build up a sector that relies on used US imports. There are other benefits that come from this new set of rules and restrictions that are being extended as well.
Safety is always a major concern when buying a vehicle and some of the used US vehicles don’t meet standards. Vehicles that are coming in after flood damage are likely to have electrical or other underlying problems. Meanwhile, there are a whole host of other reasons for the US market to shunt unwanted cars off on another country.
Analysts and Distributors Are Optimistic
The AMDA, Mexican Association of Automobile Distributors, are hopeful that these rules will have a net benefit. Improved safety and reliability as well as increased domestic Mexican sales would be great for the country. Despite the problems the country faces with drugs and crime, it is still a desired production location for US brands. With those being pressured to move back to US soil, Mexico is left to take whatever steps they can to protect their own interests.
At the moment, analysts are looking at the impact these regulations are already having. The positives are showing through with general sales within the country already showing an improvement. This could continue an upward trend for the 12th largest market for cars in the world. We can only hope for the sake of those who are relying on them that these rules help create better jobs with more security on both sides of the border. This is essential to Mexico if Trump’s pressure on US automakers moves production out of the country.