The Nissan Smyrna vehicle assembly plant opened in 1983, marking the first major Tennessee automobile installation. The plant with more than 7,000 people produces a variety of vehicles, including the LEAF EV and the Crossover Rogue.
Michael Wayland / CNBC
Detroit – About a third of vehicle production in North America could be cut off next week as a result of The 25% rates of President Donald Trump In Mexico and Canada, as car makers try to mitigate increased costs and buyers are kept in the purchase of new cars and trucks.
This lost production would equate approximately 20,000 units daily, according to a new outstanding data analysis and forecast of the S&P Global Mobility firm.
The impact of production and the possibility of layoffs would continue to grow if the rates, which Trump implemented TuesdayThey do not change or rise.
« We have a new dawn, to some extent. This is an important movement, » said Stephanie Brinley, an associate director in Autointelligence at S&P Global Mobility, during a web seminar with the Automotive Press Association.
S&P Global Mobility Reports 25 automobile manufacturers produce 63,900 light passengers in North America. Most of these, about 65%, meet in the United States, followed by 27% in Mexico and 8% in Canada.
United States President Donald Trump signs an executive order at the Oval Office of the White House on February 25, 2025 in Washington, DC. Trump led the Department of Commerce to open an investigation into possible rates for copper imports.
Alex Wong | Getty Images News | Pictures of getty
The affected production will vary according to the auto location, vehicle and plant. It could mean that a plant is completely hidden or that produces less than a particular vehicle that is based on parts that can travel through the borders several times.
« I think we will see some plants fall turns. We will see some plants only for slow -building rates, » said Brinley. « It will not necessarily be coherent (car makers). It will be a lot of what they need and how much they need. »
Automobile shares actions fell more than the largest market on Tuesday as a result of the rates.
GM, Ford and Stelllantis Stochs
A rate is a tax on imports, or foreign goods, introduced to the United States. Companies that matter the goods pay the rates and some experts fear that companies simply transmit additional expenses to consumers, increasing the cost of vehicles and reducing demand.
Several car makers this week refused to directly comment on 25%rates, based on past comments or commercial associations to speak on their behalf.
The American Automotive Policy Council that represents Ford engine, General engines and Estellantis -They affected by such rates, argues that vehicles and parts that meet strict domestic and regional content requirements of the United States-Mexico-Canadian or USCA agreement should be exempt from the rate increase.
« Our North -Americans, who invested billions in the United States to meet these requirements, should not have their competitiveness diminished by rates that will increase the cost of building vehicles in the United States and Stymie investment in North -American Working force, while our North America’s competitors benefit from easy access to our native market, » said the former native market. Missouri, Matt Blunt, President of AAPC, at the A statement on Monday night.
The Automotive Alliance, a commercial group representing the vast majority of car manufacturers who sell vehicles in the United States, warned that no car maker will be unsuspecting, leading to an increase in consumer costs.
« »This is not hypothetical. All automobile manufacturers will have an impact on these rates in Canada and Mexico. Most of them foresee that the price of some vehicle models will increase, up to 25 percent, and the negative impact on the price of the vehicle and the availability of vehicles will be heard almost immediately, « said John Bozzella, CEO of the Alliance for Automotive Innovation, in a statement.
Nissan engine On Monday afternoon, he said: « The sustained rates of this magnitude will have a negative impact on automobile manufacturers and we are evaluating how we will do measures accordingly. We remain hope that the sides can reach an agreement for a productive path forward. »
Several automobile executives and Wall Street analysts have described the rates as a non -necessary chaos in the automotive industry.
« President Trump has talked much about making our North -American automobile industry stronger, providing more production here, more innovation in the United States and if its administration can achieve it, it would be one of the most signed successes, » CEO de Ford Said Jim Farley last month During the Wolfe Research Research Conference. « So far what we are seeing is very costly and a lot of chaos. »
Fees supporters have argued that they are a way to help at the commercial disparity level with the countries, while it can serve as a leverage to renegotiate usmca, which Trump originally negotiated during his first term as president.
Automobile manufacturers have been relatively strong about the financial impacts that expect to form these rates, but CEO of GM, Mary Bar Last month he said that the car maker believes that he could mitigate short -term impacts of between 30% and 50% of the additional costs « without deploying any capital ».
It is difficult to calculate the total impact that these rates will have on the production of North -Americans. The parts can cross between the borders of the countries several times in different ways before they are installed in a vehicle.
« It is one of the smoother situations that the car industry has really seen really … In more than a few years of unexpected cuppieces, supply situations, » said Brinley. « The industry itself has developed to be a little more agile than maybe seven or eight years ago … but many things are still very uncertain. »
The automotive industry is a complex global system that thrives in certainty. S&P Global Mobility reports that on average 20,000 parts in a vehicle when it is reduced to females and screws. Parts can come from anywhere between 50 and 120 countries
For example, the Ford F-150 meets exclusively in America, but has approximately 2,700 main parts, which exclude many small pieces, according to Caresoft, Company of engineering consulting and consulting.
These parts come from 24 different countries, according to Livonia, based in Michigan, Caresoft.
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