Mexico Wage Pressure Rises as EU Cuts EV Tariffs

This week in auto news, the UAW’s push for higher wages in Mexico and revisions to the USMCA highlighted an increasingly volatile landscape, even as Mexico and the European Union agreed to eliminate EV tariffs. While auto exports reached record levels, suppliers continued facing a growing liquidity crisis. Meanwhile, Volvo and Stellantis announced major investments, Toyota led supplier relations rankings, and Ferrari unveiled the Amalfi while continuing to resist the industry’s broader electrification trend.

Drives, pedal to the metal — this week in automotive!

Toyota Tops 2026 Supplier Relations Ranking in North America

Toyota, Honda, General Motors, Nissan, Ford, and Stellantis all improved their supplier relationship scores in the 2026 Plante Moran Working Relations Index (WRI), marking the first time in the study’s 26-year history that every major North American automaker advanced simultaneously despite tariff pressures, EV cost disputes, and ongoing logistics volatility.

Stellantis CEO Flags China Partnership Opportunities in Mexico

Stellantis CEO Antonio Filosa said the company sees opportunities to expand partnerships in North America, including the potential production and sale of Chinese-branded vehicles in Mexico and possibly Canada, while ruling out similar plans for the United States.

Hybrid Manufacturing in Mexico: Where Additive Meets Machining

For Mexico, hybrid manufacturing matters for a simple reason: suppliers are being asked to deliver more complex components, faster, with tighter documentation and repeatability. Hybrid approaches can help reduce lead times for certain parts, lower material waste on expensive alloys, and open design options that are difficult to achieve with machining alone. 

Mexico Auto Exports Hit Records as Supplier Cash Strains

The Mexican automotive industry has recorded unprecedented light-vehicle export figures in 1Q26, yet the surge is masking a deepening liquidity crisis among specialized suppliers. According to data from the Administrative Registry of the Light Vehicle Automotive Industry (RAIAVL) and analysis from trade finance platform Mundi, the sector is grappling with payment cycles extending up to 180 days and a significant reduction in the use of USMCA tariff benefits.

UAW Pushes Higher Mexico Wages, Warns on USMCA Exit

The United Auto Workers (UAW) is pressing for stricter labor standards, higher wages in Mexico, and stronger production requirements in the upcoming review of the United States-Mexico-Canada Agreement (USMCA), as negotiations between Washington, Mexico City, and Ottawa are expected to begin in the coming months. The union warned that the United States should consider withdrawing from the trade pact if worker-focused demands are not addressed, while automakers including Volkswagen, General Motors, Toyota, and Nissan urged US authorities to avoid tightening rules that they say are already increasing production costs across North America.

Mexico, EU to Scrap EV and Battery Tariffs in Trade Deal

Mexico and the European Union are set to eliminate mutual tariffs on electric vehicles and batteries as part of a modernized trade framework designed to insulate both economies from shifting North American trade policies and strengthen bilateral industrial ties.

Volvo Group’s US$1 Billion Nuevo Leon Plant Set for 2026 Opening

Volvo Group is advancing the operational phase of its heavy-duty truck manufacturing project in Nuevo Leon, Mexico, with inauguration of the plant expected in May 2026. The facility in Ciénega de Flores, backed by a US$1 billion investment and spanning more than 200,000 square meters, is set to become Volvo Group’s largest truck manufacturing plant globally and a key production hub for the North American market.

JETOUR, SOUEAST Expand in LatAm with Brazil Launch

JETOUR and SOUEAST have launched operations in Brazil with three plug-in hybrid SUVs, marking the next phase of a coordinated Latin America expansion strategy. The companies introduced the T1, T2 and S06 models during an event in São Paulo, positioning Brazil as a core market following their earlier joint entry into Mexico. The launch included initial deliveries and agreements with Safra Finance, Carbon and Sertrading to support financing and distribution. 

Ferrari Unveils Amalfi, 640 hp V8 Roma Successor

Ferrari has officially updated its mid-front-engined V8 lineup with the introduction of the Ferrari Amalfi and the subsequent unveiling of the Amalfi Spider. The new model series serves as the direct successor to the Ferrari Roma, delivering a mechanical evolution that raises power output to 640 hp while deliberately avoiding electrification in favor of a traditional internal combustion powertrain.

Stellantis Launches US$69.5 Billion Five-Year Growth Plan

Stellantis unveiled a five-year, €60 billion (US$69.5 billion) strategic plan, titled FaSTLAne 2030, aimed at reversing recent financial losses through a broad product offensive, manufacturing consolidation in Europe, and expanded partnerships with Chinese automakers.