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AZ Auto Industry Economy Will Boom with USMCA and Brexit

  • 75% of North American auto parts will be made in the USA with new USMCA deal
  • Electric Car manufacturer Lucid Motors is building a brand new plant in Casa Grande
  • Nikola building Zero-Emission Heavy Trucks in Coolidge Arizona
  • Brexit may open up US auto industry trade deal with the UK
  • Richards Auto Clinic is excited for the future of the automotive industry. As you can tell, we love vehicles and love working on them. Lets take a look in to the future with the exciting, some times turbulent, political decisions and economic developments that effect the USA and in turn our great state of Arizona.

    USMCA a Huge Win for America’s Auto Industry

    President Trump signed the new USMCA (US Mexico Canada Agreement) into law on January 29th, 2019. It is expected to create up to 76,000 new auto jobs and spur $34 billion in new investment in the auto industry.

    Ford supports USMCA and is saying it will incentivize engineering and production of high-value parts, create and protect high-wage manufacturing jobs, protect intellectual property and recognizes sought U.S. safety standards.

    Under the USMCA 75% of auto content (auto parts) will be produced here in the USA. If we look at the auto glass industry for instance, the potential is huge. For instance, Quality Auto Glass, LLC. in Mesa is already pushing Made in America auto glass for fleet vehicles which is a large portion of traffic on U.S. streets. Just think, what if most of the vehicles in the U.S. replace their windshields with Made in America auto glass?

    As you will see in the next few paragraphs, it is only going to accelerate the auto industry boom in Arizona.

    Lucid Motors and Nikola open manufacturing plants in Arizona

    Lucid Motors is building a $674 million dollar factory in Casa Grande. It will be built on more than 500-acres of land and will be a huge impact for us that goes beyond Pinal County.

    Nikola Corp. is also building zero-emission heavy trucks in Coolidge (the sister city just east of Casa Grande).

    The big trucks do not pollute, they are quiet, they brake faster and perform on key with regular diesel trucks.

    “Image leaving a world better than we found it,” Nikola’s CEO Trevor Milton touts. “With Nikola’s vision, the world will be cleaner, safer and healthier.”

    This type of momentum is exactly why Richards Auto Clinic is excited for the auto industry. We are on the verge of a momentous and exciting time in Arizona.

    Brexit Could Open Door to US Auto Industry Trade Deal

    The UK has been pondering on how to implement Brexit for years. Well, it is finally here with new Prime Minister Boris Johnson leading the way. Brexit is simply the UK separating from the European Union to negotiate their own trade deals with neighboring countries.

    In January of 2019, Britains biggest carmaker Jaguar Land Rover revealed that 500 jobs are at risk and had already cut 1,000 jobs at its Solihull plant in 2018. Nissan has also pulled back from manufacturing cars at a Sunderland plant, because of Brexit.

    About 18-percent of cars in the UK are sold to the US and 53% to Europe countries. If Europe and the UK do not negotiate a trade deal in the near future, the UK auto industry will suffer greatly and this leaves the door open for the Americanization of the UK auto industry.

    While the US auto industry is booming and the UK auto industry shrinks, President Trump has announced that America will help the UK in trade once they leave the EU. What could the trade-offs be? Maybe we see more mini-coopers on the road, but America manufactures majority of its’ parts? Or the UK buys more US vehicles and we purchase more of their meat products?

    Who knows… We will see what will happen in the future.

    Richards Auto Clinic Can Help You Maintain Your Vehicle at an Affordable Price

    Our family owned and operated auto shop does everything from oil change to engine replacement. With over 300-five star reviews on the internet, you can rest assure your vehicle is in good hands at Richards Auto Clinic.

    Did your check engine light come on? Call us at: 602-273-1100 and get a professional diagnostic if your vehicle. Also, take advantage of our online specials so you can save hundreds if not thousands of dollars on all of our repair services.