Background on Rogelio Árzate and Anpact
Rogelio Árzate, the CEO of Anpact (Asociación Nacional de Productores de Autobuses, Camiones y Tractocamiones), is a prominent figure in Mexico’s heavy truck industry. Anpact represents manufacturers of buses, trucks, and tractors, making it a vital organization in the transportation sector. Árzate’s insights during the Global Transportation & Innovation Summit in Monterrey, Nuevo León, highlight the industry’s strategic importance and current challenges.
Tariffs Impact on Heavy Truck Producers
During the panel “Facing the Future: Challenges and Opportunities of Transportation,” Árzate addressed concerns about the impact of increased tariffs on steel and aluminum imposed by the United States. He acknowledged that these tariffs directly affect truck producers, as steel and aluminum are crucial components in manufacturing heavy trucks.
Production and Exportation Impact
- Árzate reported a 22.3% contraction in production and a 20% impact on exports due to tariffs in the first four months of the year.
- He emphasized that heavy trucks move 70% of the value of trade between Mexico and the United States, as they transport goods such as water, seats, and panels.
Component and Autopart Costs
According to Árzate, the American Trucking Associations (ATA) presented a hypothetical scenario where a 25% tariff on heavy trucks would increase their cost by $35,000 for American consumers. Components and autopartes cross the border multiple times during assembly, with each crossing adding $3,000 to $12,000 in additional costs.
Protection through T-MEC
Árzate highlighted that the heavy truck industry is highly integrated with the US market, with many components sourced from the United States for final vehicle assembly in Mexico. Anpact members export only through the T-MEC, ensuring their products benefit from the agreement’s provisions.
Adherence to Rules of Origin
Árzate confirmed that Anpact members comply with the rules of origin, requiring 64% national content by 2024-2027. He also mentioned that they do not pay any tariffs, as the only relevant ones are for steel and aluminum.
Investment Despite Challenges
Árzate assured that despite the current tariff environment, investment in the heavy truck industry continues. Volvo’s announcement of a significant investment in its Ciénega de Flores plant in Nuevo León is evidence of this ongoing growth.
Key Questions and Answers
- Q: How do tariffs affect heavy truck producers? A: Tariffs on steel and aluminum directly impact heavy truck producers, causing a 22.3% contraction in production and a 20% impact on exports.
- Q: What percentage of a heavy truck must be made in Mexico by 2024-2027? A: Anpact members must comply with a 64% national content rule by 2024-2027.
- Q: Do heavy truck producers pay any tariffs? A: No, the only relevant tariffs are those on steel and aluminum.
- Q: How does the T-MEC protect the heavy truck industry? A: The industry is highly integrated with the US market, and Anpact members export only through the T-MEC, ensuring their products benefit from the agreement’s provisions.
- Q: Are investments in the heavy truck industry affected by current challenges? A: Despite challenges, investments like Volvo’s significant plant expansion in Nuevo León continue.
