Despite wide spread speculations that the anticipated revision of the North American Free Trade Agreement (NAFTA) could result in tariffs being slapped on trade and products between the U.S. and Mexico, especially those that are produced in Mexico and exported to the U.S., car maker Renault-Nissan has clarified that it has have no plans whatsoever to move their production units for cars out of Mexico.

Carlos Ghosn, the chairman and chief executive of the carmaker does not foresee an outright ban, which could sorely hurt the manufacturer’s production plant in Mexico, but rather he expects a “rebalancing” of the 23 year old trade deal between the U.S., Mexico and Canada, the executive said in the TV interview.

According to Reuters, Nissan is, at present, the largest auto manufacturer that produces and operates from Mexico even as the company built its first overseas plant in Mexico 50 years ago. The total production capacity of the Mexican unit is now over 800,000 cars.

“I’m not so worried because frankly I think NAFTA is so much in the interest of all parties,” said Ghosn.

Based on his claims that the U.S. has lost businesses and jobs to its southern neighbour, especially in the technology segment, anti Mexico rhetoric consumed much of U.S. President Donald Trump’s election campaign. Negotiation to revise the trilateral deal has been underway ever since the first day that Trump assumed office at the White House in January this year.

“We are used to dealing with different countries, political change, agreement change, and this is not an exception,” said Ghosn. Once any new NAFTA arrangements have been announced, Nissan has plans to and therefore the company does not intent to speculate but to react, he pledged.

Following the PSA’s acquisition on Mondaty of Opel from the hands of General Motors, the firm has assumed third position in Europe.

There would be greater and more elaborate consolidation in the auto industry globally due to the fact that the regulatory environment for vehicles has tightened lately and there has been severe and harsh restrictions put on carbon emissions which have tightened and therefore Ghosn said that this has prompted – and will continue to fuel consolidation.

Nissan had acquired a $2.3 billion stake last year in Mitsubishi but Renault-Nissan has no current plans to merge with the Japanese company as of now.

“I don’t think you need a merger in order to make the synergies. Keeping the autonomy of the company and keeping the company separate, you can still make synergies work. That’s the road we have taken.

“Yes, we know how to make a merger but for the moment we don’t need it and for the moment the conditions are not reunited to see clear advantage for a merger towards the way we work now.”

(Adapted from CNBC)