Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
As Trump targets Toyota over Mexico, Nissan faces bigger risk
Source: Reuters
POLITICS | Fri Jan 6, 2017 | 6:12am EST
As Trump targets Toyota over Mexico, Nissan faces bigger risk
By Naomi Tajitsu | TOKYO
U.S. President-elect Donald Trump has threatened Toyota Motor Corp (7203.T) over its Mexican-built cars, but the biggest risk from a punitive tariff would be for its compatriot Nissan Motor Co (7201.T), the largest automaker operating in the country.
Trump has criticized U.S. companies like General Motors (G.N) and Ford Motor Co (F.N) which manufacture abroad, accusing them of costing U.S. jobs. On Thursday he took on Toyota, warning the world's largest automaker that it would face a "big border tax" if it exported Mexico-built cars to the U.S. market.
But it is Nissan, Japan's second-largest automaker, which would be the bigger victim of any tax punishment. Nissan built its first overseas plant in Mexico in 50 years ago and now produces more than 800,000 cars there, mainly its entry-level Versa and Sentra sedans.
Nissan's production dwarfs that of Toyota, Honda Motor Co (7267.T) and Mazda Motor Corp (7261.T) in Mexico. It exports roughly half of its output to the United States, where it also has production plants.
Vehicles made in Mexico comprise roughly one-quarter of Nissan's total U.S. vehicle sales, industry experts say, compared with around 30 percent for smaller rival Mazda, but less than 10 percent for Toyota and Honda.
[font size=1]-snip-[/font]
As Trump targets Toyota over Mexico, Nissan faces bigger risk
By Naomi Tajitsu | TOKYO
U.S. President-elect Donald Trump has threatened Toyota Motor Corp (7203.T) over its Mexican-built cars, but the biggest risk from a punitive tariff would be for its compatriot Nissan Motor Co (7201.T), the largest automaker operating in the country.
Trump has criticized U.S. companies like General Motors (G.N) and Ford Motor Co (F.N) which manufacture abroad, accusing them of costing U.S. jobs. On Thursday he took on Toyota, warning the world's largest automaker that it would face a "big border tax" if it exported Mexico-built cars to the U.S. market.
But it is Nissan, Japan's second-largest automaker, which would be the bigger victim of any tax punishment. Nissan built its first overseas plant in Mexico in 50 years ago and now produces more than 800,000 cars there, mainly its entry-level Versa and Sentra sedans.
Nissan's production dwarfs that of Toyota, Honda Motor Co (7267.T) and Mazda Motor Corp (7261.T) in Mexico. It exports roughly half of its output to the United States, where it also has production plants.
Vehicles made in Mexico comprise roughly one-quarter of Nissan's total U.S. vehicle sales, industry experts say, compared with around 30 percent for smaller rival Mazda, but less than 10 percent for Toyota and Honda.
[font size=1]-snip-[/font]
Read more: http://www.reuters.com/article/us-japan-autos-nissan-idUSKBN14Q12O
2 replies
= new reply since forum marked as read
= new reply since forum marked as read
