FILE PHOTO – The flags of Canada, Mexico and the U.S. are seen on a lectern before a joint news conference on the closing of the seventh round of NAFTA talks in Mexico City, Mexico March 5, 2018. REUTERS/Edgard Garrido
July 10, 2018
NAGOYA (Reuters) – Japanese auto components supplier Jtekt Corp <6473.T> said it was holding off on expanding production in Mexico, awaiting the outcome of talks over the North American Free Trade Agreement, known as NAFTA.
The auto industry has been plagued by uncertainty since U.S. President Donald Trump last year launched a renegotiation of NAFTA, seeking to repatriate manufacturing jobs to the United States. Jtekt President Tetsuo Agata said prospective automaker clients were waiting for the outcome of the talks before making new decisions on their Mexico operations.
“They are watching the NAFTA situation carefully. So we also have to hold off on new production plans,” he told reporters at its Nagoya headquarters. Jtekt is a Toyota <7203.T> group supplier which manufactures vehicle steering systems.
(Reporting by Ritsuko Ando; Editing by Muralikumar Anantharaman)
