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One of Toyota's main auto parts suppliers said it would cancel construction its new plant in Mexico if the Japanese automaker were to give in to Donald Trump's demands and cancel its own new plant in the country, according to The Wall Street Journal.
“We're going to have to rethink our investment if Toyota cancels its new plant,” said Yasumori Ihara, president of the company Aisin Seiki, in an interview published on Wednesday by The WSJ.
General Motors and Toyota, for the time being, have refused to change their plans for production in Mexico, despite both companies receiving direct threats by Trump on his Twitter account against vehicles they sell in the U.S. but make in Mexico.
Toyota has pledged to continue with its plan to invest 1 billion dollars in its new plant in Mexico that will build Corollas for the international market, despite the risk of paying steep border taxes in the U.S. under the new Trump administration.
Aisin Seikis' 45-million dollar plant is designed to supply both the new Toyota and General Motors plants in Mexico with auto parts.
The president of Aisin Seiki explained that construction of the plant is already underway and that it should be up and running by early next year. The plant will provide automakers in Mexico automobile components that are currently made in Illinois.
Ihara told The WSJ that he's worried about how Trump's border taxes could affect Mexico's auto industry.
Aisin Seiki plans to invest 800 million dollars in its plants on the U.S. side of the border over the next three years. Toyota directly owns 23% of Aisin Seiki's shares, and indirectly owns another 11%.
