Major car manufacturers are preparing to pour billions of dollars into expanding their United States manufacturing operations as they work to circumvent potential tariffs from the Trump administration, though industry leaders emphasize they need certainty regarding trade policies before moving forward with final plans.
Automotive companies have pressed the Trump administration to renew the United States-Mexico-Canada Agreement, which faces evaluation this year. Industry executives describe this trade pact as essential for American vehicle manufacturing.
Toyota has committed to a $10 billion investment across the United States during the coming five years, though the company has only revealed specifics for approximately $2 billion of that total.
“Where we build, what we build, is all in flux so to speak,” Toyota Division General Manager David Crist told Reuters on the sidelines of the New York Auto Show. “It’s hard to make those decisions with a 25% USMCA tariff. I think we have to get more clarity on that before we finalize every decision within the $10 billion, but that investment is coming.”
Hyundai has revealed plans for a $26 billion investment commitment extending through 2028. The manufacturer displayed a concept SUV and announced intentions to manufacture a new mid-size truck in America by 2030.
Hyundai CEO Jose Munoz explained the company’s goal of producing 80% of US-sold vehicles domestically while increasing American production from 800,000 units to 1.2 million annually. “We want to invest here,” Munoz told Reuters at the show. “This is our most important market.”
Previously, Hyundai informed the Trump administration that unclear USMCA status was causing delays in investment choices.
“Early confirmation of USMCA’s extension would immediately unlock over $20 billion in new American investments. Every month of ambiguity slows job creation, site selection and technology development,” Hyundai said.
Volkswagen revealed an updated version of its Atlas SUV on Wednesday, manufactured at the company’s Tennessee facility.
“When you look at the investment volumes and also lead times to build up a product portfolio and supply chains, stability is just so important,” Kjell Gruner, president and CEO of Volkswagen Group of America, told Reuters.
Nissan’s most affordable vehicles for American consumers come from Mexican facilities, creating complications due to tariff policies, according to Christian Meunier, chairman of Nissan Americas. “The problem is, they’re not made in the U.S., and it’s a very big challenge to build very affordable cars in the U.S. because of the labor rate,” he told Reuters.
Nissan is expanding operations at its Tennessee manufacturing site and introducing a new Rogue hybrid model there next year. The tariffs were “a good thing for Nissan, because it forced us to accelerate the localization of our production,” Meunier said.
