Supply Chain Research

Nissan plans to shift production of the engine for its QX50 SUV to the U.S. from Japan. They’ll then be shipped to Mexico in for vehicle assembly. The move starts the process of complying with the U.S.-Mexico-Canada Agreement’s (USMCA) rules of origin (ROO) which require a higher value of parts to be produced in the region to allow vehicles to be exempt from tariffs than under NAFTA. Nissan’s Mexican business imported $1.22 billion of parts in the 12 months to Jan. 31, of which 80.9% came from outside the USMCA region. Options for further “USMCA on-shoring” could include gearboxes which ...