Sonora Looks To Gain From New NAFTA Car Content Rules

By Murphy Woodhouse
Published: Friday, December 21, 2018 - 9:20am

Hermosillo Ford plant
Murphy Woodhouse/KJZZ News
The Hermosillo Ford plant is one of the largest employers in the city.

The newly renegotiated trade deal between the U.S., Canada and Mexico deal requires more vehicle components be made in North America. And Sonora sees opportunity in that possible change.

If approved, the new trade deal — known as the USMCA — will require that 75 percent of the value of vehicle components be sourced in North America. That’s up from 62.5 percent.

As it stands, vehicles and other automotive products are simply assembled in Sonora. No made-in-Sonora parts are being used, but that could soon change.

“If we can do it, we’re talking about a market in the medium term that could get up to $1.6 billion,” said Gerardo Vazquez, head of the lobbyist group Index, which represents export manufacturers.

To get there, manufacturers need to meet numerous certifications to become qualified suppliers. Index is working with the University of Sonora on that front. If successful, vehicle component manufacturing could begin in 2020.

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