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Regional value content

U.S. wants 4-year phase-in for higher NAFTA auto content thresholds

April 30, 2018 reuters Leave a Comment

WASHINGTON (Reuters) - The latest U.S. proposal for increasing NAFTA’s regional automotive content would carry a four-year phase-in to meet a higher, 75 percent regional value threshold and new labor content rules requiring substantial work at wages of $16 an hour or higher. Flags of Canada, Mexico and the U.S. are seen before a joint news conference on the closing of the seventh round of NAFTA talks in Mexico City, Mexico March 5, 2018. REUTERS/Edgard Garrido A summary of the proposal, seen by Reuters and circulating among auto industry officials based on descriptions from Canadian and Mexican trade negotiators, would require the $16 wage on work comprising 40 percent of the value of light-duty passenger vehicles and 45 percent for pickup trucks. The U.S. plan would allow automakers to count the high salaries paid for engineering, research, sales, software and product development jobs towards 15 percentage points of these goals, a provision that benefits Detroit … [Read more...] about U.S. wants 4-year phase-in for higher NAFTA auto content thresholds

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U.S. lowers NAFTA key auto content demand: auto executives

April 13, 2018 reuters Leave a Comment

MEXICO CITY/WASHINGTON (Reuters) - U.S. trade negotiators have significantly softened their demands to increase regional automotive content under a reworked NAFTA trade pact in an effort to move more quickly towards a deal in the next few weeks, auto industry executives said on Friday. FILE PHOTO: Eduardo Solis, President of the Mexican Automotive Industry Association (AMIA), speaks during an interview with Reuters in Mexico City, Mexico May 22, 2017. REUTERS/Carlos Jasso/File Photo A deal on automotive content rules would remove one of the biggest sticking points in talks to update the 24-year-old North American Free Trade Agreement. The Trump administration had initially demanded that North American-built vehicles contain 85 percent content made in NAFTA countries by value, up from the current 62.5 percent, along with half the value coming from the United States - levels that Canada, Mexico and automotive groups had said was unworkable. But this has been cut by 10 … [Read more...] about U.S. lowers NAFTA key auto content demand: auto executives

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U.S. lowers NAFTA key auto content demand: Mexico auto lobby

April 13, 2018 robert Leave a Comment

MEXICO CITY (Reuters) - U.S. trade negotiators have reduced their demand for regional auto content under a reworked NAFTA trade deal to 75 percent from the 85 percent they had sought, the head of Mexico’s automotive industry association (AMIA), said on Friday. Eduardo Solis, President of the Mexican Automotive Industry Association (AMIA), speaks during an interview with Reuters in Mexico City, Mexico May 22, 2017. REUTERS/Carlos Jasso/File Photo “The U.S. put on the table 75 percent instead of 85 percent for the regional content value of the vehicle and its core components,” AMIA president Eduardo Solis said in a statement. “All of this is being carefully analyzed and specific questions are being asked during this round of the U.S. negotiators (in charge of) rules of origin.” AMIA has argued it would be difficult to meet an increase in the regional content requirement, the threshold that cars must meet so they can qualify to be sold in North … [Read more...] about U.S. lowers NAFTA key auto content demand: Mexico auto lobby

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Trump said to soften on NAFTA regional car content

April 4, 2018 robert Leave a Comment

Eric Martin and Josh Wingrove, Bloomberg Published 4:21 p.m. ET April 4, 2018 | Updated 4:21 p.m. ET April 4, 2018 The Trump administration has softened a key NAFTA demand for more North American content in car manufacturing – a potential olive branch on arguably the biggest sticking point as the U.S. pushes to reach a stopgap deal this month, according to three people familiar with the talks. The U.S. proposal would distinguish between different NAFTA car parts by grouping them into five categories, some of which would have a lower requirement for North American content or none at all, said the people, who spoke on condition of anonymity because they’re not authorized to discuss the negotiations publicly. While the U.S. had been pushing for 85 percent of all vehicles to be sourced from the three NAFTA countries, its latest proposal would apply that threshold to major components such as transmissions and engines but not to the simplest inputs like nuts and bolts, the … [Read more...] about Trump said to soften on NAFTA regional car content

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2018 Hyundai Kona First Drive – Content Comes at a Price

March 26, 2018 robert Leave a Comment

It’s probably a little too on the nose for any automaker to launch a car in the city, state, or region it’s named after, but that didn’t stop Hyundai from bringing media to Hawaii to drive the newest entry into the subcompact crossover class. Hyundai did so not just because of the “synergy” (ugh) between place and name, but because the company wanted to show us scribes how sporty and fun and well-suited to outdoorsy folk the Kona is. Never mind that most compact SUV buyers aren’t hauling long boards – they’re hauling little humans. Every automaker does this — projecting their crossovers as the key to adventure. And I have no doubt that equipped with the correct accessories, the Kona can haul your bikes to the trailhead just fine. But most of these are going to be found in traffic on city streets, just like most of the crossovers buyers will cross-shop against the Kona. The bigger question, then, is where does the Kona fit in a … [Read more...] about 2018 Hyundai Kona First Drive – Content Comes at a Price

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