/ Modified dec 21, 2018 11:10 a.m.

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. (PHOTO: 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.
By posting comments, you agree to our
AZPM encourages comments, but comments that contain profanity, unrelated information, threats, libel, defamatory statements, obscenities, pornography or that violate the law are not allowed. Comments that promote commercial products or services are not allowed. Comments in violation of this policy will be removed. Continued posting of comments that violate this policy will result in the commenter being banned from the site.

By submitting your comments, you hereby give AZPM the right to post your comments and potentially use them in any other form of media operated by this institution.
Arizona Public Media broadcast stations are licensed to the Arizona Board of Regents. Arizona Public Media and AZPM are registered trademarks of the Arizona Board of Regents.
The University of Arizona