October 1, 2018 / 3:18 PM / 3 months ago

BUZZ-Carmakers, auto parts makers up on new NAFTA deal

** Shares of U.S. carmakers and auto parts makers rose as concerns around higher tariffs receded after the United States and Canada forged a last-gasp deal on Sunday to salvage NAFTA as a trilateral pact with Mexico

** Ford rose 2 pct to $9.43 and General Motors gained 1.7 pct at $34.25

** Auto parts makers Superior Industries rose 1.2 pct and Gentherm each advanced 2.3 pct

** The S&P 1500 Auto Parts & Equipment index edged up 0.7 pct, with 10 of its 16 components makers trading higher

** The new deal requires a higher proportion of the parts in a car to be made in areas of North America paying at least $16 an hour, a rule aimed at shifting jobs from Mexico.

** “NAFTA concerns have weighed on the auto industry and the new that deal appears to remove risks to Canadian-US auto trade and worries of very high tariffs which could create negative impacts” - David Tyerman, lead analyst at Cormark Securities

** Deal to allow for significant growth in tariff-free automotive exports from Canada above current production levels of about 2 mln units, safeguarding Canadian plants

** Shares of Canadian auto parts makers took heart from the new pact as shares of Magna International were up 5.1 pct and Linamar 9.1 pct (Reporting by Shreyashi Sanyal in Bengaluru)

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