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German industrial group Thyssenkrupp is watching the new administration of U.S. President Donald Trump carefully to decide whether to make further investments in two automotive components plants in Mexico, its chief executive said.
Thyssenkrupp produces components for the North American automotive market in Mexico, part of the North American Free Trade Area (NAFTA), but Trump has warned he may impose tariffs on imports from Mexico to encourage companies to produce in the United States instead.
"We are watching quite carefully what the result of the Trump administration will be," Heinrich Hiesinger told analysts on a conference call after the steel-to-elevators group presented first-quarter results on Thursday.
Hiesinger said current investments in the Mexican plants were fully covered by orders from carmakers but questions now arose over future investments.
Thyssenkrupp announced investments of around 150 million euros (US$160 million) in a new industrial park in San Miguel de Allende, Guanajuato last June and said Mexico played a central role in the expansion of its auto components business.
