Nearshoring Needs Policy; GM Beats Tariffs: Auto Week

This week in auto news: Mexico’s nearshoring potential remains strong but hinges on bold policy decisions. Electrification, talent shortages, and tariff impacts dominate this week’s automotive and manufacturing headlines. GM beat earnings expectations despite US tariffs, while Mexico’s role in EV and motorcycle trade continues to grow. Industry leaders emphasize the urgent need for workforce development to sustain competitiveness amid ongoing innovation.

Start your engines—this is the week in automotive!

Mexico’s Nearshoring Edge at Risk Without Strong Policies

Business leaders, academics, and government officials agree: Mexico is in a strategic position to benefit from the nearshoring trend reshaping global supply chains. Its geographic location, economic advantages, and trade agreements like the USMCA position the country as a crucial hub for regional manufacturing and logistics.

GM Tops Estimates Despite US$1.1 Billion Tariff Hit

General Motors reported a US$1.1 billion impact from auto tariffs in 2Q25 as the company continues adjusting operations and revising forecasts in response to trade policies enacted under President Donald Trump. Despite the tariffs, GM’s adjusted earnings of US$2.53 per share exceeded analyst expectations of US$2.44, while revenue reached US$47.12 billion—slightly above the projected US$46.28 billion.

Mexico’s Role in the Global Shift Toward Electric Mobility

Mexico’s long-term competitiveness hinges on its ability to serve as both a buyer and a builder of electric vehicles. This dual approach — access plus domestic production — will help Mexican automakers remain relevant and resilient in a fast‐changing automotive world, says CLAUT’s General Director, Manuel Montoya.

Mexico Becomes Second-Largest Market for Chinese Motorcycles

Mexico became the second-largest export market for Chinese motorcycles in 2024, importing US$1.307 billion worth of vehicles, a 45.7% increase from the US$897 million reported in 2023, according to data from China's General Administration of Customs. This figure positions Mexico behind only the United States, which imported US$1.752 billion in Chinese motorcycles.

ANAPSA: Strengthening Mexico’s Automotive, EV Supply Chain

No company has relocated a plant from Mexico to the United States, nor do they intend to. While new models may be built in the United States, existing operations in Mexico will remain. The United States lacks sufficient skilled labor and has significantly higher production costs, says ANAPSA’s General Director, Alberto Bustamente.

Boosting Tooling Through Talent Development, Local Investment

Having a national strategy is a step in the right direction, but execution remains the key challenge. Public technical schools frequently operate with outdated equipment and overcrowded classrooms, which limits the effectiveness of training efforts, says Tooling Cluster’s General Director Alfonso Peña.

DRiV Expands in Mexico With New Lines, 1,250 Parts

DRiV has announced the launch of 11 new product lines over the past 10 months and the planned introduction of 1,250 new part numbers in 2025. The company, which operates 12 manufacturing plants in Mexico, specializes in the design, production, and distribution of parts for both light and commercial vehicles.

Nissan to Shut Legacy Plant in Cost-Cutting Move

Nissan will shut down its Oppama plant in Yokosuka, Kanagawa Prefecture by the end of fiscal year 2027 as part of a broader cost-cutting and consolidation strategy. All production will be transferred to its Kyushu facility in Fukuoka Prefecture. The move affects 2,400 employees and marks the end of operations at a site long central to Nissan’s manufacturing legacy.

Uber to Roll Out 20,000 Robotaxis in Lucid, Nuro Deal

Uber Technologies has signed a six-year agreement with electric vehicle maker Lucid Group and autonomous driving developer Nuro to deploy more than 20,000 autonomous robotaxis globally. As part of the partnership, Uber will invest US$300 million in Lucid and make an undisclosed, multi-hundred-million-dollar investment in Nuro.

Manufacturing Faces Talent Crunch in Innovation Era

The manufacturing industry, particularly in sectors such as automotive and aerospace, is undergoing rapid transformation—driven by increasingly complex automation systems, digital and interconnected processes, and growing market demand for higher quality and safety at competitive prices.

Stellantis Scraps Hydrogen Vans Over Cost, Low Demand

Stellantis has announced it will discontinue the development of its hydrogen fuel cell technology and will not launch its planned hydrogen-powered Pro One vans this year. The decision stems from limited hydrogen refueling infrastructure, high capital costs, and insufficient consumer incentives—factors the company says undermine the commercial viability of hydrogen-powered light commercial vehicles before 2030.