These are uncertain times for the North American Automotive Industry. On his first day of office, President Donald Trump announced his intention to meet with Ottawa and Mexico City to renegotiate the 24 year old NAFTA. After 1½ years and several rounds of negotiations, negotiators appear to be approaching the finish line.
Throughout these talks, US Trade Representative Robert Lighthizer made it very clear that he intends to prioritize a number of changes to the current NAFTA, including the all-important regional value content (RVC) rules and particularly in the automotive sector. Companies have made strategic decisions based on the rules of the 1994 NAFTA and today, that rulebook is being rewritten.
Here is what we know. Uncertainty brings risks, but also opportunities for those executives who are proactive and best informed.
Looking ahead toward a final agreement, the automotive sector of OEMs and tier suppliers are anticipating changes that will impact their respective business strategies, from raw material supply to finished products.
What’s next? AIAG member companies need to continually take a fresh look at what they make, where they make it, and how they make it.
Join us on May 24, 2018, for the “NAFTA/TPP Update: Why Trade Policy Matters” webinar, with David Hamill and Birgit Matthiesen of Arent Fox LLP and Joe Carson and Bindiya Vakil of Resilinc who will provide the latest on developments in Washington D.C. and their insight into the possible rule changes likely to impact your bottom line.