Recently, according to media reports, Elon Musk is planning to bring suppliers from Tesla's Shanghai factory to near the new factory in Mexico. Musk has invited Chinese suppliers to replicate the supply chain system of the Shanghai factory. Musk's aim is to enable the Mexican factory to manufacture Tesla vehicles at lower costs. Additionally, this supply chain system can also serve the nearby Tesla factory in Texas, USA.
Experts believe that it is logical for US carmakers to utilize China's efficient and cost-effective supply chain. Last year, during his visit to the Shanghai factory, Musk praised Chinese companies and the Shanghai factory for achieving the highest level of productivity globally.
However, Tesla's actions may face resistance from the US government, the United Auto Workers union, and the Canadian Automotive Parts Trade Association. Reports indicate that the US is seeking to control the flow of products from China through Mexico.
The US government is exploring tariff modifications to restrict the import of Chinese cars. Therefore, Chinese car manufacturers are more inclined to establish a foothold in Mexico and build a comprehensive supplier system. In response, the US Treasury Secretary visited Mexico in December to negotiate an agreement to strengthen Mexico's scrutiny of foreign investment.
Although economists believe that the US should not completely close off foreign trade with China, the Canadian Automotive Parts Suppliers Association is concerned that a large number of Chinese automotive suppliers may replace current suppliers in North America.
