US Tariffs Target Mexico’s Auto Sector: The Week in Automotive

This week in auto news: Mexico’s automotive industry is under pressure as new US tariffs hit exports, threaten 320,000 jobs, and challenge plant operations under USMCA rules. Despite headwinds, experts underscore skilled talent as North America’s strongest advantage, while Lázaro Cárdenas cements its position as the top gateway for Asian trade. On the global stage, alliances shift with Mercedes exiting Nissan, and AI continues to accelerate the future of mobility.

Buckle up—here’s your automotive roundup!

AI Tech, Smart Cameras Improve Driver Experience in US

A recent J.D. Power study shows that artificial intelligence (AI) technologies—such as smart climate control, driver preferences settings, and blind spot cameras—are increasingly boosting vehicle satisfaction among drivers in the United States. The 2025 US Tech Experience Index Study introduced a smart vehicle category to assess seven AI-driven features designed to enhance comfort and usability.

GM México Appoints Kathia Muñoz as New Communications Director

General Motors México has appointed Kathia Muñoz as its new Director of Communications and Public Relations, effective Sep. 1, 2025. Muñoz will also join the company’s Executive Committee, reporting directly to Paco Garza, President and CEO, GM de México.

Hertz Uses AI for Car Checks Amid Scrutiny and Disputes

Hertz has introduced AI-powered vehicle inspection systems at 10 US airports and plans to expand to 100 locations by the end of 2025. Developed by Israel-based UVeye, the technology uses high-resolution cameras and machine learning to scan a vehicle’s body, glass, tires, and undercarriage for damage and maintenance issues. 

JAC Mexico Rolls Out Full Vehicle Support With Iké Asistencia

JAC Mexico announced a strategic partnership with Iké Asistencia, a leading provider of roadside assistance solutions, to deliver comprehensive support for all JAC vehicles in the country. The agreement is designed to enhance customer service and establish direct feedback channels with clients.

Waymo Begins Self-Driving Tests in NYC Amid Labor Concerns

Waymo has received the first permit from the New York City Department of Transportation to test autonomous vehicles on public roads in Manhattan and Downtown Brooklyn. The permit allows Waymo to operate up to eight self-driving vehicles through late September, with the possibility of extension. All testing must comply with New York state law, requiring a trained safety driver behind the wheel at all times.

Mercedes Exits Nissan Stake in US$325 Million Deal

Mercedes-Benz has sold its entire 3.8% stake in Nissan for ¥47.83 billion (US$324.65 million), a source familiar with the matter told Reuters, signaling further unraveling among traditional automotive alliances. The stake, held through Mercedes-Benz’s pension trust since 2016, was sold via a block trade at ¥341.3 per share, roughly a 6% discount to Nissan’s Aug. 25 closing price of ¥363.

Mexico Auto Jobs Drop 320,000 in 1H25 on Tariffs, Weak Demand

Mexico’s automotive and construction industries experienced significant declines in employment and production during the first half of 2025, reflecting both external and internal pressures on key sectors of the national economy.

Talent: Mexico’s Advantage in North America’s Auto Sector

“Without specialized talent, there is no production. Without production, there is no integration. And without integration, North America’s competitiveness weakens against regions advancing with scale and specialization, such as Asia,” says INA’s Executive President, Francisco González.

Tec Students Develop System to Turn Speed Bumps Into Power

Four students from Tecnológico de Monterrey’s Mexico City campus have developed a system that turns one of Mexico’s most common urban features—the speed bump—into a source of renewable energy. Their project, FREENERGY, earned second place in the Discovery category of the Xignux Challenge 2025, a competition featuring over 1,200 students and 350 sustainability-focused proposals.

Toyota, Honda, Nissan Deny Tariff-Driven Price Hikes

Toyota, Honda, and Nissan have denied that recent vehicle price increases in the United States are linked to tariffs imposed under the Trump administration, despite reports suggesting otherwise.

Mexico Automakers Slash US Shipments After 25% Tariff

More than half of the automotive manufacturers operating in Mexico reduced exports to the United States after Washington imposed a 25% tariff on imported vehicles in April. Enacted under President Donald Trump on national security grounds,  the measure prompted companies including Mazda, KIA, Audi, Ford, Honda, Toyota, and General Motors to adjust their export strategies.

Lázaro Cárdenas Port Strengthens Role in Asian Imports

With 295,292 vehicles handled so far in 2025—a 22.6% increase compared to the same period last year—the port of Lázaro Cárdenas has reinforced its position as Mexico’s primary entry point for Asian vehicles, particularly from China. By contrast, Manzanillo, once considered an emerging alternative for automotive imports, reported no vehicle movement this year, down from 1,039 units in the same period in 2023, according to the Dirección General de Puertos.

Mexico Auto Exports to US Drop as New Plants Face USMCA

Mexico’s automotive sector is facing a decline in exports to the United States as new assembly plants struggle to comply with rules of origin under the USMCA. Since April 3, vehicles that fail to meet these requirements have been subject to a 25% tariff upon entry into the United States, up sharply from the previous 2.5% rate.