On January 10, 2019, LevaData, a supply chain AI company, released the results of its 2018 Automotive Survey based on responses from one hundred US-based auto executives. All of the individuals surveyed are senior executives of car manufacturers, car parts manufacturers or are in leadership positions in related industries.

The study was designed to gather feedback on the impact of NAFTA2 or as it has been renamed, the USMCA (US Mexico Canada Agreement), on the North American automotive industry. This industry is of major importance to the economies of three countries that are signatories to this agreement, and specifically to several U.S states (i.e. Michigan, Ohio, Kentucky, Tennessee) and the province of Ontario in Canada.

It should be pointed out that the USMCA has not been approved by the U.S. Congress. Based on the battle over President Trump’s border wall, this may suggest that some sections of the Agreement may be revised before it takes effect. Assuming that the essential structure of the agreement remains in place, here are some insights on how it will shape the industry in the coming years.

Impact of USMCA on North American Vehicle Production