Parts for GM’s V-6 engines make four international border crossings in all, without a single tariff levied before they arrive at their final destination
ROMULUS, Mich. — Long before the pistons for General Motors Co. V-6 engines reach the U.S. No. 1 automaker’s Romulus, Michigan plant, they are seasoned international travellers.
U.S. automakers have lobbied hard for the new treaty to preserve NAFTA’s effective lack of borders, and say they can work with it because it does just that. It's quite important for us to get those rules in place so we can have some stability and predictability The pistons that end their long journey there are only a small part of the 70-plus trucks bearing parts such as engine blocks or cylinder heads, that arrive there daily.
The Mexican parts are cheaper, GM’s Bovenzi said, but using dual suppliers reduces the risk of relying on one plant for a critical part like the engine block. As individually labeled V-6 engines move down the line — for Cadillacs and Acadias — about 200 parts from 88 different suppliers are attached. Fifty-eight are American, 12 Mexican, 5 Canadian and 13 from elsewhere.
The use of lower-cost countries for more labour intensive parts is now “part of the recipe to compete in the global market,” said Kristin Dziczek, vice president of industry, labour and economics at the Center for Automotive Research in Michigan.
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