Auto Investment Pivots Under US Tariffs, Weighing on Mexico

This week in automotive news: US tariff policies continue to reshape North America’s automotive landscape, redirecting investment away from Mexico and pressuring Chinese manufacturers to accelerate local strategies. Labor and security challenges are mounting as carriers prepare nationwide blockades and automakers face growing talent shortages. Meanwhile, companies such as FOTON and Scania are moving ahead with new expansions that support Mexico’s evolving mobility sector.

Fasten your seatbelts — this is the week in automotive!

US Tariffs Shift Auto Investment Away from Mexico

Mexico is unlikely to attract new automotive investment in the short term as US tariff policies continue redirecting capital and production capacity, according to Guido Vildozo, senior manager and associate director, S&P Global Mobility. Speaking at the AMDA Automotive Forum 2025, Vildozo said the United States has secured US$50 billion in new automotive investment over an 11-month period following tariff implementation, compared to the US$40 billion Mexico captured over the past decade.

Ford Boosts After-Sales Service with 49 New Mexico Technicians

Ford has expanded its investment in Mexican talent development, as Ford de México confirmed the graduation of 49 new master technicians—an initiative aligned with its long-term strategy to strengthen after-sales operations and customer service performance. The announcement follows the commitment made during its 100th anniversary in Mexico to channel resources toward human capital and productivity-focused growth.

FOTON Unveils US$65 Million Mexico Expansion

FOTON will invest MX$1,200 million (US$65 million) in Mexico by 2026 through the opening of a third assembly plant and the expansion of its two existing facilities, according to company executives. The manufacturer confirmed that the new operation will begin in January in Tlajomulco de Zuñiga, Jalisco, where it will assemble Tunland pickups for the domestic and Latin American markets. 

UAW Seeks Import Quotas, Citing USMCA Impact on Jobs

The United Auto Workers (UAW) union has formally asked the Office of the United States Trade Representative (USTR) to impose import quotas on light vehicles as part of the ongoing USMCA review. The proposal seeks to cap the number of foreign-made units entering the US market and redirect automotive production back to domestic facilities. The union argues that the current trade framework enables excessive import reliance and limits economic gains for US workers and manufacturers.

Nissan Recasts Communication as Key to Global Strategy

Nissan is reframing communication as a core strategic function that informs corporate decisions, strengthens internal alignment and guides product development across its global operations.

Mexico Hit by Blockade as Carriers, Producers Protest Security

Organizations representing freight carriers and agricultural producers will stage a coordinated national blockade on Nov. 24, targeting major highways and customs facilities across Mexico. The National Association of Carriers (ANTAC) said the action responds to growing security concerns, stating that members face “insecurity on the roads, extortion, and deteriorated federal and state routes.” 

Toyota Hits 200,000 Hybrid Sales in Mexico Amid HEV Surge

Toyota has reached 200,000 hybrid electric vehicle (HEV) sales in Mexico. The company said the milestone comes 14 months after surpassing 150,000 HEVs in September 2024, reflecting sales of nearly 50,000 hybrids during that period.

Ford Warns of Growing Shortage of Skilled Auto Mechanics

Ford is warning of a deepening shortage of skilled labor in manufacturing, placing workforce availability at the center of its operational concerns. The company reports 5,000 open mechanic positions in the United States—roles that remain unfilled even though some dealers have salaries of up to US$120,000. This figure was confirmed by CEO Jim Farley during an interview on the podcast Office Hours: Business Edition, where he described the structural labor pressure facing the sector.

Tesla Says Musk Pay Ruling Could Hit Earnings for Years

Tesla is facing a potentially multi-year impact on its reported earnings as the Delaware Supreme Court weighs whether to reinstate or permanently void CEO Elon Musk’s 2018 compensation package. If Tesla loses the appeal, the company will be required to recognize a replacement stock-based compensation plan valued between US$23.7 billion and US$26 billion, according to company filings and independent financial analyses. The accounting charge would be recognized over multiple quarters and could push Tesla’s GAAP earnings into negative territory through mid-2027.

Toyota Starts Battery Production at US$14 Billion NC Plant

Toyota has begun battery production at its new US$14 billion facility in Liberty, North Carolina, marking its first battery plant outside Japan and its eleventh manufacturing site in the United States. The company said the project will create up to 5,100 jobs and serve as a core hub for lithium-ion battery development for its hybrid, plug-in hybrid, and battery-electric vehicle lineup. Toyota also announced an additional investment of up to US$10 billion over the next five years to support future mobility programs in the United States, bringing its total historical investment in the country to nearly US$60 billion.

Chinese Truck Manufacturers Rush Mexico Strategy on Tariff Fears

Chinese truck manufacturers operating in Mexico are accelerating local strategies as they brace for a possible import tariff of up to 50% on vehicles from countries without trade agreements. The proposal has not clarified whether it will apply to trucks, tractors or buses, but companies expect broad coverage. Several manufacturers have begun talks with authorities, adjusted investment plans or fast-tracked facility construction to offset potential cost increases.

Scania Expands Mexico Network, Adds New Asia Hub to Boost Output

Scania is advancing its global production strategy and expanding its national service capabilities as part of a plan to strengthen supply-chain resilience and improve fleet availability in Mexico. The company outlined its initiatives during Expo Transporte ANPACT 2025, highlighting an expanded industrial footprint in Asia, new service locations across Mexico and the introduction of a digital ecosystem designed to integrate vehicle operations, fleet management and maintenance.