Threat's to Mexico's Auto Industry

The news that Ford has cancelled plans for a $1.6bn Mexican plant and opted to make future electric and self-driving cars in Michigan is part of the growing threat facing the Mexican car industry after a decade or more of rapid growth.

The Mexican peso has depreciated heavily against the US dollar since the November Presidential election. In the short term at least this gives Mexican exporters a competitive advantage when trying to sell into the USA. But there are much deeper concerns about the likely direction of US trade policy once Trump gets into office.

The United States is far and away the biggest export market for Mexican cars.