Mexico continues struggling to bring its vital auto parts supply base back to normal production levels, creating a brake on the entire North American supply chain.
The labored restart from the pandemic shutdown comes as U.S. automakers are clamoring for Mexican-made parts to resume building popular vehicles such as pickups and crossovers needed to replenish falling inventory.
But now a new pressure is growing: The renegotiated U.S.-Mexico-Canada Agreement takes effect on July 1 and will require manufacturers to show higher levels of regional content in vehicles and parts to keep them free from tariffs.
Mexico's 1,500 supplier plants must help make that possible, for vehicles made in the U.S. and those built in Mexico.
Mexico supplies about $70 billion a year in parts, or an average of about $5,000 of content per U.S.-made vehicle.