Mexico Border Shutdown Could Devastate Auto Industry

April 3, 2019—A U.S.-Mexico border shutdown would be “devastating” to American auto companies, their workers, parts suppliers and regional economies throughout the Midwest, Texas and California, reported The Detroit Free Press. 

Not only do parts come into the United States from Mexico, but 37 percent of U.S.-made parts ship to Mexico for further steps in vehicle manufacturing, according to the report. A disruption in the supply chain risks shutting down factories and bigger production operations that can’t restart.

What is imported from Mexico has increased over the years, from labor-intensive items such as wire harnesses and cut-and-sewn seat covers to almost every type of component, including engines, axles and transmissions.