Jeep previewed the upcoming Compass crossover, set to debut later this year, and announced the model will continue to roll off the production line of the automaker's plant in Melfi, Italy, without mentioning anything about its Mexico plant, where the vehicle for the US market is built. If the production at the Toluca plant continues, the model will be subject to the tariffs proposed by the Trump administration.
Carmakers respond differently to the tariffs set to be imposed on imported products. For instance, Honda has reportedly decided to move the production of the next-generation Civic from its plant in Guanajuato, Mexico, to its facility in Greensburg, Indiana. The move would help the Japanese carmaker avoid the 25% tariffs that are expected to be imposed on products imported to the US.
Honda is just one of the many carmakers that build cars in Mexico. Lower manufacturing costs and a cheaper workforce led them to move part of the production network south. Toyota, Mercedes-Benz, BMW, Audi, Kia, and Volkswagen are only a few of the carmakers that chose to build cars in Mexico.
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