Mexican Class 8 Production Falls 6.6% as Kenworth Output Plummets

Key Details Mexico's heavy-duty vehicle manufacturing dropped to 12,617 units in March, down 6.6% from 13,512 units a year earlier, according to the National Institute of Statistics and Geography. Class 8 trucks represented 95.9% of total output, with 92% shipped to U.S. markets. Kenworth's Sharp Decline Paccar's Kenworth division drove much of the slowdown, producing just 748 trucks in March - a steep 54.2% decline from 1,632 units last year. The Mexicali plant has struggled for three consecutive months, with February and January output also down more than 54% each. Why It Matters The downturn reflects broader manufacturing challenges including Section 232 tariffs on truck imports that took effect November 1. While tariff details remain unclear, unions have linked recent production cuts to trade policy impacts. Paccar uniquely backed the tariff implementation, betting it would boost market share. Competitor Response Other U.S. Class 8 makers showed more resilience. Freightliner built 8,366 trucks in March, up 1.4% year-over-year, while International produced 2,990 units, down just 2.7%. First quarter 2026 data reveals the broader picture - total heavy-duty production dropped 30.4% compared to Q1 2025.