This pioneering work focuses on the crucial role that the cooperation of Japan, a major stakeholder in production networks in North America, is playing in supporting Mexico's domestic suppliers of the automotive industry. The importance of Japanese cooperation is analyzed with an examination of the transfer of knowledge and technology crucial for reshaping the automotive industry. Additionally, particular interest is given to the challenges posed to Mexico's automotive industry by the United States–Mexico–Canada Agreement (USMCA), the Covid-19 disruptions, and the transition to electric vehicle (EV) manufacturing.