December 21, 2018

Sonora Looks to Gain From New NAFTA Car Parts Rules

No made-in-Sonora parts are being used, but that could soon change.

Ford plant hermosillo The Hermosillo Ford plant is one of the largest employers in the city. A preliminary trade deal between Mexico and the United States would increase the portion of components that must come from North American manufacturers.
Murphy Woodhouse/Fronteras Desk

The newly renegotiated trade deal between the U.S., Canada and Mexico deal requires more vehicle components be made in North America. And Sonora sees opportunity in that possible change.

If approved, the new trade deal — known as the USMCA — will require that 75 percent of the value of vehicle components be sourced in North America. That’s up from 62.5 percent.

As it stands, vehicles and other automotive products are simply assembled in Sonora. No made-in-Sonora parts are being used, but that could soon change.

“If we can do it, we’re talking about a market in the medium term that could get up to $1.6 billion,” said Gerardo Vazquez, head of the lobbyist group Index, which represents export manufacturers.

To get there, manufacturers need to meet numerous certifications to become qualified suppliers. Index is working with the University of Sonora on that front. If successful, vehicle component manufacturing could begin in 2020.

Fronteras Desk
This story is from the Fronteras Desk, a collaboration of Southwestern public radio stations, including NPR 89.1. Read more from the Fronteras Desk.
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