US Cuts Tariffs on Mexican Cars: The Week in Automotive

This week in automotive news: EV momentum shifts as Honda and GM revise strategies, with Honda postponing a US$15 billion project. The United States cuts tariffs on Mexican car imports, offering some relief amid trade uncertainties. While Mexico’s auto production rises, exports decline, and domestic sales take a hit. Automakers like Nissan and Chirey reevaluate operations, as Chinese brands pursue expansion despite market challenges.

Rev up your engines—here’s the latest in auto news!

Honda, GM Adapt Plans as EV Demand Slows, Trade Risks Rise

Honda and General Motors have announced significant shifts in their global strategies, reflecting slow down in demand for electric vehicles (EVs) and growing trade-related uncertainties in the automotive sector.

Audi First to Recycle Scrap Steel for New Car Models

Audi has become the first automaker to reuse source materials from its post-consumption vehicles. The German brand is now transforming scrap steel from end-of-life cars into high-quality steel for new models.

US Lowers Auto Tariff on Mexican Cars to 15% from 25%

The US government has officially reduced the average tariff on passenger vehicles imported from Mexico from 25% to approximately 15%, contingent on compliance with USMCA rules of origin. The change, detailed in Proclamation 10908, was published by the US Department of Commerce in the Federal Register and retroactively effective from Apr. 3, 2025.

10 Women Driving Change in the Auto Industry

Every five years, Automotive News unveils its “100 Leading Women in the North American Auto Industry” list, celebrating influential leaders shaping the sector’s future. Below are 10 women featured in the most recent edition, representing diverse companies and leadership roles across the industry.

Mexico Auto Output Grows 5% in 2025, Exports Drop 7%

In the first quarter of 2025, Mexico's automotive sector experienced a nearly 5% increase in vehicle production compared to the same period in 2024, while exports dropped by 7.29%, according to data from the National Institute of Statistics and Geography (INEGI). 

Musk Pledges Five Years at Tesla, Vows to Cut Political Spending

Elon Musk confirmed he will remain CEO of Tesla for at least the next five years during a virtual appearance at the Qatar Economic Forum in Doha. His statement comes weeks after a Wall Street Journal report suggested Tesla’s board had contacted executive search firms about finding his successor.

Nissan Denies Mexico Plant Closures in Global Cost-Cutting Plan

Nissan has unveiled a global restructuring strategy aimed at reducing costs by approximately US$540 billion by 2027, including the closure of seven manufacturing plants and a workforce reduction of up to 20,000 jobs. While Japanese media outlets such as Yomiuri and Kyodo News have reported the potential shutdown of two production facilities in Mexico, the automaker has denied any confirmed plans to cease operations in the country.

Mexico's April Car Sales Drop 4.2%, Hitting Chinese Automakers

Light vehicle sales in Mexico dropped by 4.2% year-over-year in April, with 108,298 units sold, according to data from INEGI. The decline marks a significant shift in market dynamics, even impacting Chinese automakers that had consistently reported annual growth.

Chirey Pauses Mexico Plant Plans, Focuses on After-Sales Service

Chirey has announced a strategic shift in its operations in Mexico, prioritizing after-sales maintenance and customer service while pausing plans for a local manufacturing facility. Svein Azcué, Vice President of Mexico Operations, explained that the decision to delay investment stems from current economic uncertainty and pending developments in North American trade negotiations.

BMW San Luis Potosi Plant Earns CANACINTRA Quality Award

BMW Group’s San Luis Potosi plant has been honored with the 2024 Quality Award by the National Chamber of the Transformation Industry (CANACINTRA), marking the facility’s first participation in the recognition process. The award acknowledges the plant’s achievements in continuous improvement systems, technological innovation, talent development, and environmental management.

Musk Recalled Teslas for Robotaxis But Sold Them Instead

Between 2019 and late 2024, Tesla operated under a leasing policy in the United States that prevented customers from purchasing their leased vehicles at the end of the lease term. CEO Elon Musk initially claimed this restriction was necessary because the vehicles would be used for Tesla's upcoming autonomous ride-hailing service. 

Changan to Expand Mexico Dealerships to 80, Aims 2% Market Share

Chinese automaker Changan is accelerating its expansion in Mexico, aiming to reach 80 dealership locations by the end of 2025, up from 67 currently. The company also targets a 2% market  share—doubling its current 1%—through the launch of nine new vehicle models this year: five focused on hybrid technology, one fully electric, and the rest combustion-engine models.

Aguascalientes Auto Workers See 10%-15% Profit-Sharing Boost

Profit-sharing for unionized workers in Aguascalientes’ automotive industry has risen notably this year, driven by production growth at Nissan and other key manufacturers in the region. 

Honda Delays US$15 Billion EV Project Amid Demand, Tariff Woes

Honda has announced a two-year delay for its electric vehicle (EV) megaproject in Canada, citing slowing EV market momentum, tariff-related uncertainty, and broader economic concerns. The US$15 billion project, originally planned for Ontario, included four industrial plants forming a comprehensive EV supply chain with an annual production capacity of 240,000 vehicles.