Global Auto Output Threatened by Nexperia; GM Faces Tax Hurdle

This week in automotive news: Global production faces disruption as a Nexperia chip dispute threatens assembly lines in North America and Europe. US automakers report 3Q25 earnings amid tariffs and softening demand. In Mexico, GM contends with MX$1.8 billion in tax liabilities, Stellantis moves Jeep Compass production to Illinois, BYD recalls 115,000 vehicles, and GAC Motor maintains 2026 prices despite tariffs.

Strap in for a burnout — here’s your weekly roundup!

US Auto Giants Report 3Q25 Earnings Amid Tariffs, Weak Demand

The US automotive industry is entering its third-quarter earnings season amid cost pressures from tariffs, supply chain volatility, and weakening demand indicators. General Motors, Ford Motor and Tesla are scheduled to report financial results this week, with analysts viewing the earnings as a signal of whether recent stability in production and sales can continue through year-end.

Mexico City Eyes Liability Insurance for Public Parking Lots

The Congress of Mexico City is advancing a proposal that would require all public parking lots to assume financial responsibility for theft or damage to vehicles under their care. The initiative directs the city’s 16 boroughs, the Ministry of Mobility (SEMOVI), and the Institute of Administrative Verification (INVEA) to strengthen oversight and enforce existing laws mandating insurance coverage for parking operators.

GM Faces MX$1.8 Billion Tax Liabilities Amid Mexico Legal Reforms

General Motors (GM) faces unresolved tax liabilities in Mexico totaling nearly MX$1.8 billion (US$97.3 million), amid reforms to the Ley de Amparo—a constitutional mechanism protecting individuals and companies from government actions that may violate their rights. The changes could limit companies’ ability to contest federal tax claims. The issues span federal and local jurisdictions and involve both corporate income and property taxes.

Mexico Auto Sector Flags Supply Chain Risks Ahead of USMCA Talks

The automotive industry in Mexico is opposing a proposal to move the United States-Mexico-Canada Agreement (USMCA review to a bilateral format, warning it could disrupt the regional supply chain developed over three decades. The current trilateral framework is scheduled for review in 2026, but recent political statements have raised the possibility of separate US-Mexico and US-Canada agreements.

Global Car Output Threatened by Nexperia Chip Dispute

A trade dispute involving Dutch semiconductor manufacturer Nexperia has heightened the risk of a global automotive production shutdown, as chip supplies face disruption across North America, Europe, and Asia. Industry groups warn that shortages linked to Nexperia could halt assembly lines within weeks if shipments do not resume.

GAC Motor Maintains 2026 Mexico Prices Amid 50% Tariffs

Chinese automaker GAC Motor confirmed that it will not raise vehicle prices in Mexico in 2026, despite an increase in import tariffs on Chinese-made vehicles from 20% to 50%. “Mexico is not one of the markets, but the most important market for the corporation, where a head office and a subsidiary have already been established, and there is a plan in place for Mexico to become the hub for all operations in Latin America,” said Sergio González, Sales Director, GAC Motor in Mexico.

Grupo IAMSA Secures INM Transport Deals Amid Competition Scrutiny

Grupo IAMSA, owner of ETN Turistar and Viva, has secured contracts exceeding MX$4 billion (US$216.2 million) with Mexico’s National Institute of Migration (INM) for the transportation of repatriated migrants, according to an investigation by EL CEO. The conglomerate reportedly achieved this through simulated competition among its own companies, consolidating its position as the main provider of both land and air transport for migrant repatriation.

BYD Launches Largest Recall Amid Design, Battery Issues

Chinese automaker BYD has announced its largest vehicle recall to date, impacting more than 115,000 cars across two model lines due to component design flaws and battery-related safety risks, according to China’s State Administration for Market Regulation (SAMR).

Stellantis Shifts Jeep Compass Production from Canada to Illinois

Stellantis announced it will move production of its next-generation Jeep Compass from its Brampton, Ontario, plant to Illinois. The Brampton facility had halted production last year to prepare for the model’s launch, but modernization work was suspended in February after the Trump administration imposed new tariffs on Canada goods. The decision to relocate production redirects planned investment and output away from Canada’s auto sector, sparking concerns over the future of the Brampton plant and its workforce.

Autoliv Beats 3Q25 Forecasts, Mitigates Tariff Impact

Autoliv, the world’s largest manufacturer of airbags and seatbelts, reported better-than-expected financial results for 3Q25, driven by strong sales across the Americas and Europe and continued recovery from tariff-related costs. The company recorded adjusted earnings of US$2.32 per share, surpassing the Zacks Consensus Estimate of US$2.10 and up 26% from US$1.84 per share in the same period last year.

MISUMI Debuts Local Line, Offering Custom Parts in Three Days

MISUMI Mexico is enhancing local manufacturing with its Hecho en México (“Made in Mexico”) product line, combining Japanese precision with domestic production agility. The company reports that custom-made components such as locating pins, washers, and collars can now be  produced and delivered within three days, down from previous lead times of up to two weeks.