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Home Automotive

Strategies and Challenges for Automakers in Mexico: Volkswagen, Honda, and Audi Bet on Logistics Resilience

The Automakers Strengthen Their Operations in Mexico and Optimize Supply Chains to Tackle Global Challenges

T21 Media by T21 Media
14 November, 2024
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Volkswagen , Honda and Audi Mexico automakers are implementing innovative strategies in the country to strengthen their supply chains and improve their competitiveness in an increasingly complex global context. According to representatives of these companies, one of the key measures is monitoring the logistics chain, transportation routes, local talent, innovation, among others.

In this context, Francisco Bravo, Senior Director of Supply Chain at Audi Mexico, explained how the Audi plant in Mexico becomes a strategic hub for the company, in terms of local production, and for supplying parts worldwide, including China and Germany .

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Bravo also mentioned the advantage that Mexico represents in terms of free trade agreements and highlighted the development of Mexican talent in the sector, emphasizing that some managers trained in Mexico now lead operations in China and Germany.

“Our team in Mexico is one of the most skilled I have seen in my years in the industry. This local talent not only drives production here, but also brings the Mexican vision to our global operations,” said Bravo.

In addition, this company is using the Mexican plant as a platform to reduce costs , optimize flexibility and ensure fast deliveries.

For his part, Gerardo Taboada, Head of Planning and Logistics Development at Volkswagen, highlighted the challenges faced by his company’s plant in Puebla due to its age .

However, he stressed that this feature also provides experience and stability in the processes. The plant adopts technologies such as automation and artificial intelligence to reduce human errors and improve efficiency.

Taboada also mentioned that 78% of the parts needed for production come from suppliers located less than 30 kilometers from the plant , which allows for greater resilience to interruptions in the supply chain.

In the case of Honda , Hector Martinez, head of the Export Sales and Logistics Department CBU at Honda de Mexico, emphasized the importance of port and transportation infrastructure in Mexico, especially in ports such as Lázaro Cárdenas and Veracruz.

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Hector Martinez, Head of Export Sales and Logistics Department CBU at Honda de Mexico

Martinez also spoke about the problems of vandalism and theft on railways and highways , which is prompting the company to take additional security measures. To mitigate these challenges, Honda has invested in long-term contracts and new transportation systems to ensure the continuity of its operations.

In general, representatives of the three shipyards agreed that joint work with local authorities and suppliers is essential to overcome the current difficulties .

Volkswagen, for example, implements its “control tower” that monitors its entire supply chain from supplier to plant , allowing for a comprehensive security view and rapid response to threats on the roads.

Thus, the strategies shared by Audi, Volkswagen and Honda reflect a solid commitment to talent development , technological innovation and collaboration with local partners in Mexico.

According to specialists, these initiatives, aligned with a vision of sustainability and adaptation to global uncertainty, position Mexican plants as key pillars in the growth of these automakers and in their resilience to future challenges.

These statements were made during the  10th edition of Automotive Logistics & Supply Chain Mexico .

Comment and follow us on X: @karinaquintero / @GrupoT21

 

Tags: ASSEMBLERS IN MEXICOAudi MéxicoAutomotiveSLINGVolkswagen

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índice de Confianza del Transporte y Logística – Cuarto trimestre 2023 10 destinos de exportación de vehículos pesados 2023 Descubre el Top 10 de destinos de exportación de vehículos pesados en México en 2023 La venta de vehículos pesados rompe récord en 2023 5 marcas de camiones más vendidas