Long before the pistons for General Motors Co V-6 engines reach the U.S. No. 1 a...
ROMULUS, Mich. - Long before the pistons for General Motors Co V-6 engines reach the U.S. No. 1 automaker’s Romulus, Michigan plant, they are seasoned international travelers.
U.S. President Donald Trump now seeks to replace NAFTA with the new United States-Mexico-Canada Agreement , signed by the countries’ leaders last November, which he says will boost American jobs. U.S. business investments fell 3% in the third quarter and 1% in the second quarter, due to concerns over mounting trade tensions, including the issue of NAFTA and tariffs worldwide.
The Romulus-built V-6 uses 235 parts from 100 primary suppliers. Sixty-seven ship from factories in the United States, 13 from Mexico, 8 from Canada and 12 from elsewhere in the world. Most of the electronics come from Asia. The more labor intensive it is to make, the more likely a part is sourced from Mexico, according to James Rubenstein, a professor of geography at Oxford, Ohio-based Miami University who has studied the automobile industry and NAFTA.
Ford and Fiat Chrysler, alongside other major automakers like Japan’s Toyota Motor Corp and Nissan Motor Co, have all built up similar international supply chains to support their North American assembly operations.
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