The best supply chain examples you can take advantage of for Automotive Industry in Mexico

Mexico is the largest producer of motor vehicles in Latin America and the seventh largest producer of automobiles worldwide. This country's location, the quality work for assembly of its people, and its profitable salaries have positioned it as a manufacturing favorite in the automotive industry. In Mexico, there are around thirty OEM plants, which have multiple suppliers of Tier 1, 2 and 3. Among the OEM assembly plants of the automotive industry, there are important companies such as Ford, Nissan, Honda, Toyota, KIA, BMW, Audi and Volkswagen, among others.

Recently, the National Network of Automotive Industry Clusters was founded with the aim of “creating synergy between the regions”, as mentioned by Daniel Montoya, president of the network. Some of the Tier 1,2 and 3 providers belong to this network and there are currently around 600 companies integrated in it. This network seeks to facilitate the process of integration of SMEs to the Mexican manufacturing chain, which is "fundamental for the economy of Mexico", as mentioned by the president of the network.

At an international level, foreign strategic allies include Automotive Industry Action Group (AIAG) and IHS Markit, which exchange information to implement best practices in the industry. Likewise, there has been participation in other countries such as Spain, England, Serbia, Poland and France, thanks to a network of clusters in Europe with 19 associations. On the other hand, the Automotive Cluster of Nuevo León and the Ministry of Economy and Labor of the Government of Nuevo León hold the “Automotive Supplier” convention, in which purchasing companies (such as KIA, Hyundai Kefico, Apex, among others) meet with raw material suppliers, as well as Tier 2 and Tier 3 that offer their services in Mexico.

Mexico will have a window of new opportunities, according to Dr. Montoya, given that the T-MEC has rules that will cause fewer imports from Asia and Europe.

Even César Jiménez, president of the CLAUT Council, mentioned that investments in excess of 5,000 million dollars arrived in Mexico in the 100 days after the T-MEC was signed, of which the majority went to the automotive industry.

Sources:

https://insights.tetakawi.com/automotive-manufacturing-industry-in-mexico
https://www.clusterindustrial.com.mx/noticia/2983/la-red-nacional-de-clusters-de-la-industria-automotriz-hace-sinergia-entre-las-regiones
https://es.statista.com/temas/6404/la-industria-automotriz-en-mexico/
https://www.mms-mexico.com/noticias/post/industria-automotriz-de-mexico-y-la-integracion-de-la-cadena-de-suministro-