Bloomberg Businessweek

Carmakers Could Hit That Wall, Too

Trade deals have spawned a latter-day Detroit south of the border. Will Trump change that? | “Mexico, the new El Dorado of the auto industry, could suffer”

Ford was a favorite target of Donald Trump, who lambasted the company throughout his campaign for producing cars south of the border. While General Motors, Toyota, Nissan, and others were spared his critique on the campaign trail, they all share a strategic bond with their pilloried rival: increasing reliance on Mexican plants to manufacture millions of vehicles and many of their parts. That puts them at risk if the president-elect makes good on his threat to levy hefty taxes on cars assembled across the Rio Grande.

“Trump could, or will, try to set up trade barriers,” says Ferdinand Dudenhöffer, director of the Center for Automotive Research at the University of Duisburg-Essen in Germany. “Automakers

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