In Nuevo León’s auto sector, companies are skipping investment announcements to avoid US scrutiny

Despite dense tariffs imposed connected respective Mexican products by the United States, the borderline authorities of Nuevo León continues to pull concern to its car parts assemblage owing to a escaped commercialized statement objection for the industry. However, immoderate companies are present choosing to downplay their Mexican ventures and skip splashy concern announcements, according to authorities officials.

U.S. tariffs connected a scope of Mexican goods, including 25% levies connected alloy and aluminum, person made companies wary of investing successful Mexican manufacture and nearshoring. However, Mexico’s car parts assemblage is exempt from U.S. tariffs truthful agelong arsenic companies comply with determination contented requirements outlined successful the USMCA escaped commercialized agreement.

The USMCA requires automakers to adhere to strict rules of origin. Companies tin debar paying tariffs erstwhile exporting successful North America if they nutrient 75% of the worth of cars, airy trucks and indispensable car parts with components from the USMCA region.

This objection has helped Nuevo León to support precocious levels of overseas nonstop concern (FDI) successful the sector, albeit much discreetly. Several companies investing successful the authorities person chosen not to marque nationalist concern announcements successful caller months, to debar unwanted attention.

“There are galore companies that archer us, ‘I’m going to hold [to marque the announcement],’” Emmanuel Loo, the lawman curate of concern and innovation astatine the authorities Economy Ministry, told the paper El Economista.

“They are caller companies that person arrived successful the authorities and are already gathering and hiring staff… They archer us, ‘I don’t privation to say, due to the fact that of the tariff issue… Hey, I’m investing successful Nuevo León. Please don’t enactment maine successful the spotlight due to the fact that they’ll marque an illustration of maine later.’”

The Economy Ministry authoritative cited U.S.-based rubber cement shaper Oatey arsenic 1 institution that eschewed concern announcements, aft it precocious opened a caller mill successful Nuevo León without revealing the magnitude of funds invested successful the project. (Via Posta Mx)

Some companies person been much palmy astatine adhering to USMCA measures than others. Kia Mexico, for example, uses astir 98% determination content.

However, respective German car brands that export from Mexico trust heavy connected supplies from Europe. Previously, they paid a 2.5% taxation for these imports, but galore person present been deed with 25% U.S. tariffs, according to Loo.

Nuevo León has recorded higher levels of FDI truthful acold this twelvemonth than erstwhile year, with US $2.7 cardinal successful the archetypal 4th of 2025, compared to US$2.5 cardinal successful the full of 2023 and $2.1 cardinal successful 2024.

“We are astir astatine the aforesaid level arsenic [the full of] past twelvemonth successful FDI,” stated Loo.

“We cognize this volition continue. Yesterday I visited 3 companies; workers volition beryllium contracted for 3,000 jobs. We are inactive experiencing the effect of nearshoring, but each clip it is with greater added value, and creating high-impact jobs.”

The authorities authorities reported that since 2021, implicit 400 investments totaling much than $73 cardinal person been announced successful Nuevo León, galore of which are successful varying stages of improvement and whitethorn not yet look successful national records.

With reports from El Economista