Global automakers are urging the Trump administration not to terminate the North American Free Trade Agreement. The US president has threatened to withdraw from NAFTA, blaming it for the loss of manufacturing jobs in America. But analysts warn, if that happens, the impact on the auto industry could be significant. CGTN's Dan Williams has the story.  

Despite decades of decline, Detroit remains at the heartbeat of the United States auto industry. While the North American International Auto Show continues to act as an important barometer for car manufacturers. But the talk here has not just focused on the gleaming new car models on display but also on issues further afield. The Trump administration is threatening to withdraw from the North American Free Trade Agreement if progress is not made to rebalance trade on the continent. That deal is seen by many as crucial to the car industry.

ERIC KULISCH AUTOMOTIVE NEWS "Car production pretty much rests on a NAFTA platform. The whole industry has been set up and constructed in a way over the last quarter of a century to have an integrated supply chain and manufacturing platform in all three countries. The cost structure could get out of whack if NAFTA falls apart."

Some automakers appear to be hedging their bets. Fiat Chrysler announced earlier this month it would shift production of their Ram heavy duty picks up from Mexico to Michigan. While Mazda and Toyota announced they would build a joint plant in Alabama. US Auto companies are lobbying for NAFTA to remain largely in place, a view echoed by local politicians.

GOV RICK SNYDER GOVERNOR OF MICHIGAN "We need to continue NAFTA. What we should really be doing is updating NAFTA if you look at it was a couple of decades ago and it didn't really reflect all of these new technologies. The importance of more information technology in the vehicle, all of the electronics. So there are some important update areas but let's not have it fall apart."

DAN WILLIAMS DETROIT "Auto industry leaders will no doubt be watching the latest round of NAFTA talks closely. And if a deal cannot be reached. And if the U.S. were to withdraw, then analysts warn that the impact on car manufacturers could be severe."

A Recent study by Oxford Economics, a global consulting firm associated with the English university, claims a US NAFTA withdraw would cost the United States 300,000 jobs and cut economic growth.

ERIC KULISCH AUTOMOTIVE NEWS "The Auto industry hires a lot of people and there could be significant impact if NAFTA falls apart. Yes there may be some hiring here but it is not a direct correlation if Mexico and Canada are no longer free trade partners that the components and vehicles will be made here. You've got to be careful what you wish for."

The US car industry has endured various bumps in the road over the years. Car makers will be hoping the NAFTA talks don't lead manufacturers into a road block. Dan Williams, CGTN Detroit.