LevaData conducted a survey in early 2019 among executives at automotive manufacturers and tier one suppliers to understand their perception of the US Mexico Canada Agreement (USMCA) and its expected impact on their industry.
Despite the production cost increases that are expected to accompany USMCA’s adoption, the study found that auto executives are highly supportive of the agreement. The majority (78 percent) feel that the changes required by USMCA will have a positive impact on their company in the long term, and more than half (53 percent) feel USMCA will ultimately increase North American vehicle manufacturing and provide a net improvement for workers and consumers.
However, many of the participants acknowledge that production costs will increase significantly, resulting in higher prices for consumers:
- 41 percent believe production costs will increase by 10 percent over the next three years, and a significant number believe the increase could be 25 percent or more.
- 58 percent agree these increases will results in higher costs for consumers
Download the full report for detailed findings.