If a slowdown in the pace of electrification of the global vehicle base was the name of the game for the auto industry in general and for Nemak in particular in 2024 (See our 4Q23 and 2Q24 credit reports on the company), 2025 has brought a trade war. However, the situation is so volatile that it seems to change by the week, if not by the day.

In early February we gave our view on the impact on several Mexican corporates (including Nemak) of the potential US-levied tariffs that eventually weren’t, but could still be. In fact, the threat materialized in early March… to again be postponed by one month shortly after. Therefore, we will still have to monitor closely how this situation evolves.

Against this backdrop of elevated uncertainty, the Mexico-based auto parts manufacturer has opted to give ranges for the different components of its FY25 guidance, as was already the case for 2024.