USMCA Delays Impact Auto Sector: The Week in Automotive

In this week’s automotive news, USMCA uncertainty deepens as House Republicans back delaying treaty extension. Meanwhile, Mexico’s auto industry shows strong momentum, driven by surging heavy truck exports, a 10% jump in auto parts output, and Kia’s record production. Additionally, Samsung SDI acquired GM’s stake in their US$3.5B battery venture amid slowing EV demand.

Drivers! Start your engines–This week in automotive!

USMCA Reassignment: Product-Level Reorganization in Mexico

Manufactured exports from Mexico reached US$67.2 billion in June, 35.3% above the previous year. Non-automotive manufacturing exports increased 48.8%, far outpacing the 7.6% growth registered by automotive exports that same month, a gap that has widened over the first half of the year, when automotive exports grew just 1.0% against 37.6% for the rest of manufacturing. The country's exposure to the USMCA conversation is therefore much broader than vehicles and spare parts.

Mexico Heavy Truck Production and Exports Surge Over 50% in July

Mexico’s heavy-duty vehicle industry recorded a sharp rebound in July 2026, driven by a surge in demand from the United States and ongoing export diversification.

EU Vehicle Rules Tighten Scrap Exports From Aug. 13

New European Union legislation governing vehicle design, production, and waste management enters into force on August 13, introducing the bloc's first binding recycled plastic quotas for automakers alongside major restrictions on scrap exports.

The Invisible Asset Behind Every Luxury Car Transaction

Technology has made the luxury automotive market more transparent than ever. Buyers can compare vehicles across countries, research production numbers, review ownership histories and analyze prices within minutes. Artificial intelligence is accelerating that transformation.

The Wrong Conversation About Artificial Intelligence

Now, if the technology is ready, why does adoption feel so slow? The honest answer is uncomfortable: the bottleneck is not technical, it is managerial. McKinsey found that while nearly every large company is investing in AI, only 1% of executives describe their organization as mature in its deployment (McKinsey & Company, 2025). 

USMCA: Strategic Decisions That Will Shape Auto Sector’s Future

We have entered a new phase in the review of the United States-Mexico-Canada Agreement (USMCA). Following the recent decision by the US government not to extend the agreement ahead of schedule, the review mechanism established under the treaty will transition to annual reviews until the three countries reach a consensus on its renewal. Rather than bringing the process to a close, this decision confirms that North America is entering a period of continuous negotiations whose outcome will shape the future of regional integration.

Samsung SDI Buys GM’s Stake in Indiana Battery Venture

South Korean battery manufacturer Samsung SDI is ending its battery manufacturing joint venture with General Motors and taking sole ownership of the project's US$3.5 billion plant in New Carlisle, Indiana, citing weaker-than-expected demand for electric vehicles.

Mexico Auto Parts Output Up 10% to US$52.9 Billion Through May

Mexican auto parts production expanded 10% during the first five months of 2026 to reach US$52.878 billion, driven by sustained demand in the United States and double-digit growth in electrical components and gasoline engines, according to data released by the INA.

Kia EV3 Launch Puts Mexico Plant on Track for Record 300K

Kia is projected to surpass 300,000 manufactured vehicles at its assembly plant in Pesqueria, Nuevo Leon, by the close of 2026, marking the first time the facility has reached this annual volume milestone in its 10-year operating history.

House GOP Backs Greer’s Strategy to Delay USMCA Renewal

A coalition of 167 House Republicans, led by Rep. Rudy Yakym, R-Ind., has formally signaled support for US Trade Representative Jamieson Greer’s decision to prolong the joint review of the USMCA and condition its extension on specific policy concessions from Mexico and Canada.

Scrappage: The Link That Turns Vehicle Renewal Into Real Benefit

Scrappage should not be understood as the administrative conclusion of a vehicle’s useful life, but rather as a structural tool to truly transform the vehicle fleet. If Mexico seeks to advance decarbonization, improve road safety and strengthen logistics competitiveness, it must recognize that renewal does not only mean incorporating new vehicles, but also permanently removing those that should no longer remain in operation.