Details
- proposal would lift regional value content to 75% from 62.5%
- proposal calls for 4 year phase-in for passenger vehicles, two-year phase-in for pickup trucks with possibility of two-year extensions
- allows up to 15 percentage points of labor value content to come from research, product development sales, software activities
- requires 70% regional value content for steel aluminum purchased by original equipment manufacturers
- proposal would require a $16 wage on work comprising 40% of the value of light-duty passenger vehicles and 45% for pickup trucks.
- The wage demand are aimed at preserving US and Canadian auto production and putting upward pressure on Mexico's low auto wages
- It is estimated that Mexican auto assembly workers average under $6 an hour, with workers in parts plants averaging less than $3 an hour
The squeeze seems to be on the Mexican side of the border and would lead to higher costs for auto's produced in Mexico.
