In his morning conference this Wednesday, the Mexican president argued that the manufacturing of vehicles on US soil has higher costs, which directly affects consumers in that country.
The president of Mexico, Andrés Manuel López Obrador, has warned Tesla regarding the decision of its CEO, Elon Musk, to paralyze investments in the country until after the elections in the United States, pointing out that the candidate's proposal Republican to impose more tariffs on products manufactured in Mexico is not a "serious" measure.
Specifically, in his morning conference this Wednesday, the president argued that the manufacturing of vehicles on American soil has higher costs, which directly affects consumers in that country.
"This, the truth is, is not serious because the vehicles could not be made in the United States. It is not because they do not have technological or capital capacity, since they have great experience, but because the production costs are very high and it would affect their consumers," he explained.
Thus, he has framed Trump's measure in a manifestation typical of electoral campaigns, in which there is "a lot of passion and a lot of rhetoric", and in which they talk "too much" but then they find "something else." "That's why I say it's not serious," he justified.
However, he has taken advantage of the opportunity to indirectly attack Tesla, accusing the company of having another business plan or of having already done the business in stock market terms by announcing an investment in Mexico that later might not come to fruition.
"Many times they do not produce, but rather they speculate. They announce the news and do very well on the stock markets, their share prices increase and production now takes a backseat. It is an evil that we are suffering in these times," López Obrador lamented.
The president's reaction has come after the last words of Elon Musk. This has clearly delimited, and for the first time, its business decisions based on the result of the presidential race in the US.
"Trump has said he will impose heavy tariffs on vehicles produced in Mexico. So there is no point in investing heavily in Mexico if that is going to be the case. We have to see how things develop politically, Musk has argued.
AMLO'S LETTER
On the other hand, López Obrador sent a letter to Trump, in which he highlighted the deep economic integration between both nations, and warned him that unilateral measures such as closing the border with Mexico would cause serious damage to both countries.
“Friend President Trump, without the trade agreement that has benefited the people of Canada, the United States and Mexico so much (T-MEC), fundamentally through the substitution of imports and the creation of jobs in the three nations, we would run the risk of fall behind, since China legitimately intends to reach 32% of global GDP in 2040. That is its plan. In contrast, if the nations of North America do not unite and strengthen each other, we do not integrate, we will barely achieve 23%,” AMLO explained in his letter.
Likewise, López Obrador commented that, in his opinion, it was neither advisable nor convenient to manufacture in the neighboring country to the north all the automobiles and auto parts that the citizens of that country consume.
“Its production costs are very high, a situation that has been resolved precisely with the creation of automotive and auto parts plants in our country, for the benefit of both investors and companies, as well as American workers and consumers,” he detailed in the letter.
“I also ask you to take into account the following data: 377 million Mexicans live in the United States; seven out of 10 agricultural workers are of Mexican origin. Last year, Mexicans in the United States contributed US$325 billion to that country's economy and generously sent US$63 billion to their relatives in Mexico; That is, they send 18.5% and leave 81.5% of their total income in the United States,” López Obrador read during the morning conference.
