A top Japanese auto parts maker yesterday said that it had dropped Mexico as a possible location for a new factory after US President Donald Trump rapped Toyota Motor Corp over a plant south of the US border.
The decision by Nikkei 225-listed Nisshinbo Holdings Inc marked the first time a Japanese company has publicly abandoned a Mexico facility in response to Trump’s protectionist outbursts, the Nikkei Shimbun said yesterday.
The announcement came as Japanese Prime Minister Shinzo Abe headed to Washington for meetings with Trump.
Mexico was among the locations being considered for Nisshinbo’s vehicle brake parts plant, reportedly worth up to ￥10 billion (US$89 million).
The firm is a leading maker of friction-reducing brake parts and has about a 15 percent share of the global market. It already has a US plant and is looking for a new facility to service the North American market.
Company spokesman Kiyohiro Kida said Mexico had been at the top of the list for possible sites.
“Mexico was the strongest candidate but we have taken a step back,” he said, confirming the decision was a response to Trump’s trade policies.
His comments came a day after Nisshinbo’s executive managing officer Takayoshi Okugawa told an earnings briefing that Mexico was off the list.
“Regarding Mexico, we’ve dropped it,” he said. “We have to pick a site other than Mexico.”
The US is the most likely alternative, the Nikkei Shimbun said.
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