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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