US Auto Tariffs Disrupt Market: The Week in Automotive

In this week's automotive news: The US auto industry faces turbulence as 25% tariffs threaten to raise prices and lower 2025 sales, while Mexico prepares its response. Tesla reports a 13% drop in deliveries, and Nissan consolidates pickup production in Mexico. Meanwhile, INA partners with Minsait to enhance cybersecurity in the auto parts sector, and Inbursa sells a stake in STM to Stellantis' FIDIS.

Fasten your seatbelts—This is the Week in Automotive!

Banco Inbursa Sells 49.9% of STM to Stellantis' FIDIS

Banco Inbursa, owned by Carlos Slim, has sold a 49.9% stake in its automotive financial services subsidiary, STM Financial, to FIDIS SpA, the Italian financing arm of Stellantis. The transaction is pending regulatory approval.

Tesla’s Sales Plunge, Casting Doubt on 2025 Growth Target

Tesla reported its worst quarterly sales performance since 2Q22, delivering 336,681 vehicles between January and March 2025. This marks a 13% decline from 1Q24 when the company sold 386,181 units. The results fell significantly short of Wall Street expectations, which had projected approximately 390,000 deliveries.

Mercedes-Benz Ends 17-Year Sponsorship of Fashion Week Mexico

Mercedes-Benz Mexico and Fashion Week Mexico have announced the end of their 17-year sponsorship agreement, marking a major shift for the country’s most prominent fashion event. 

Minsait, INA Partner to Boost Cybersecurity in Auto Parts Sector

Minsait, a consultancy firm within the Indra Group, has formed a strategic alliance with Mexico’s National Auto Parts Industry Association (INA) to enhance cybersecurity awareness, enhance industry resilience, and support the sector’s digital transformation. This collaboration aims to assess the current state of cybersecurity in the industry and promote compliance with international security standards.

US Auto Tariffs to Hike Prices, Cut 2025 Sales Forecast: Fitch

The 25% tariffs imposed by the US government on imported vehicles and certain auto parts are expected to raise prices and reduce sales volumes, according to Fitch Ratings. The agency projects that US light vehicle sales will reach 16 million units in 2025, a decline of 300,000 from its initial forecast, citing higher vehicle prices and persistently high interest rates as key factors.  

Nearshoring Not the Promised Boom for Mexico's Economy: CEESP

The Center for Economic Studies of the Private Sector (CEESP) has stated that nearshoring has not yielded positive effects on Mexico’s economy. Instead, the possibility of US tariffs on Mexican imports could deter investment and pose risks for companies considering relocation to the country.

US Auto Tariffs May Raise Prices, Limit Choices, Experts Warn

President Donald Trump’s recent announcement imposing a 25% tariff on imported cars and auto parts has raised significant concerns in the North American auto industry.

Renault, Nissan Reduce Financial Ties Amid Leadership Shifts

Renault and Nissan have agreed to modify their long-standing alliance, reducing their cross-shareholdings and altering financial commitments. The revision comes as Nissan prepares for a leadership transition, with Ivan Espinosa set to take over as CEO.

Nissan to End Argentina Plant, Move Pickup Production to Mexico

Nissan has announced a strategic shift in its Latin American operations by consolidating production of its Nissan Frontier/Nissan Navara pickups at the CIVAC plant in Morelos, Mexico. This move, effective January 2026, will mark the end of vehicle production at its facility in Cordoba, Argentina.

Mexico Prepares to Address 25% Tariff on Automobiles

President Claudia Sheinbaum announced that she will respond to the new 25% tariffs on automobiles imposed by US President Donald Trump on April 3, emphasizing that there is still room for negotiation.

Geotab, GM Launch Mexico's First OEM Telematics Integration

Geotab and General Motors Mexico have announced a partnership to integrate telematics data directly from GM vehicles equipped with OnStar. This marks the first OEM integration of its kind for Geotab in Mexico and for GM in Latin America. The collaboration allows fleet operators to access real-time vehicle data without the need for external hardware, using an API-based integration for seamless and secure data exchange.

The Road Ahead: Strategic Priorities for Mexico’s Auto Industry

Mexico’s automotive industry has the unique opportunity to expand its global presence. Experts argue that the key lies in fully leveraging the country’s numerous trade agreements, which have often been overlooked, favoring the overreliance on the USMCA. They also stress the need for investment in workforce training at all levels to ensure Mexico can efficiently adopt and implement advanced technologies. By doing so, the country can optimize resource utilization, reduce energy consumption, and enhance overall industry competitiveness.