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Daimler CEO Expects NAFTA Free Trade Agreement Will Continue

US President Donald Trump has pressured carmakers to bring manufacturing jobs back to the United States from Mexico.

Reuters

Updated:February 3, 2017, 11:32 AM IST
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Daimler CEO Expects NAFTA Free Trade Agreement Will Continue
Daimler AG management board poses before the annual news conference of the car maker in Stuttgart (Image: Reuters)
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Mercedes maker Daimler expects that the NAFTA free trade agreement between the United States, Mexico and Canada will continue under new U.S. President Donald Trump, Daimler's chief executive told a news conference on Thursday.

"I believe that NAFTA will continue to exist," Chief Executive Dieter Zetsche said after Daimler reported full-year results, acknowledging that the details of the pact may change. Daimler makes almost a third of its revenue in the NAFTA region.

Trump has vowed to scuttle NAFTA if he cannot recast it to benefit U.S. interests, raising the risk of a major economic shock for Mexico.

Also read: Uber Strikes Deal With Daimler to Add Self-Driving Mercedes-Benz to fleet

Daimler plans to start producing compact cars in Mexico next year at a joint plant with Renault-Nissan. They are intended for the world market.

Trump has pressured carmakers to bring manufacturing jobs back to the United States from Mexico.

Also read: BMW Plans More Purchasing With Daimler

Zetsche declined to comment further on Trump's presidency, saying he did not want to speculate on potential developments.

In its quarterly statement, Daimler said: "Possible fiscal-policy stimulus from the new U.S. government could have an additional positive impact on demand."

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