The speed of the supply chain’s response will be one of the main factors for the Volkswagen Golf’s return to the Puebla plant . The German automaker is working on a logistical reconfiguration that will allow it to handle the complexity of producing a model destined for various international markets and, in particular, supplying Europe from Mexico.

At the conference “Moving forward at the pace of Mexico: Volkswagen’s rapid response to a constantly transforming automotive landscape”, at Automotive Logistics & Supply Chain , Peter Koltai, senior director of Production Control and Logistics at Volkswagen de México, explained that one of the main challenges was reducing the usual period for transferring a production program of this magnitude from four to two years .

The operation represents an additional challenge because the Golf will have a global reach, unlike previous generations that were manufactured in Puebla and were primarily intended for North America.

The model includes 10 variants, different engine configurations, and technical requirements for nearly 50 markets.

“This car is very complex. And it also means we have to handle an incredible number of parts for the factory. Just for the Golf, we have 150% more part numbers in the factory than we have for three different vehicles,” Koltai explained.

This will be complemented by a parallel production phase of approximately 40 weeks between Germany and Mexico, during which both plants will have to coordinate their operations, inventories and supply, as well as maintain communication with suppliers who will also have to serve both locations.

“Many of our suppliers will face the same challenge. They will have to produce for these 40 weeks in two different locations, one in Europe and one in Mexico. And this also applies to our sales and marketing departments, and to our customers,” he emphasized.

One of the most significant impacts will be on the movement of materials. Koltai noted that the project will involve receiving six times more components from European suppliers and a 320% increase in the number of weekly containers arriving in Mexico.

The challenge will not only be receiving that material, but also having spaces to store it and transport it in a timely manner to the Puebla plant, without affecting the production rate.

Multimodal logistics and port capacity

To meet these requirements, Volkswagen developed a scheme that combines port infrastructure, rail transport, and external storage.

In this regard, Koltai highlighted the importance of the relationship that the automaker maintains with its logistics partners in Mexico, particularly in the port of Veracruz, where it has a long-term collaboration for the handling of materials from Europe and South America.

The company plans to maintain an inventory equivalent to two days’ stock within the plant and supplement its needs through an external warehouse. This approach will allow it to manage larger volumes of components without overloading the factory’s infrastructure .

Regarding rail transport, the executive mentioned the work with Ferromex , with whom Volkswagen has maintained an agreement since 2023 to move vehicles and materials. The use of dedicated trains allows for the establishment of departure and arrival schedules, which facilitates the planning of logistics flows and the predictability of supplies.

The strategy also considers using the ports of Veracruz and Tuxpan to distribute export volumes and avoid capacity restrictions.

According to Koltai, 86% of the Golfs produced in Puebla will be destined for Europe , so it will be necessary to guarantee the transport capacity from Mexico to that market.

Mexico’s speed as a competitive advantage

According to the executive, the country’s responsiveness was key to advancing the project in a shorter period than usual.

In that sense, he identified four elements that helped accelerate the process: the commitment of the workers, the flexibility to adapt to new requirements, the creativity to develop logistical solutions, and the coordination with supply chain partners.

“Without this group, we would not have been able to create a concept where we can make this transformation in two years and with economic figures that are acceptable,” he explained.

The return of the Golf represents a test for the Mexican automotive industry’s ability to integrate into global programs , in which coordination between manufacturers, suppliers, ports, and transport operators will be fundamental.

Volkswagen de México announced that the model will begin production again in Puebla in 2027, marking the return of this vehicle to the plant and expanding the company’s manufacturing portfolio in the country.

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El cargo Volkswagen accelerates its logistics in Puebla for the return of the Golf apareció primero en T21.

Contecon Manzanillo reported that this year it reached 10 million 20-foot containers (TEU) , which has allowed the terminal of this company, dedicated to port development and operations, to consolidate itself as one of the strategic facilities in the commercial flows between Asia and Mexico.

“As a result of the work of each of Contecon’s collaborators and the trust of our clients and users, we have managed to reach 10 million TEUs in our first 11 years of operation in Mexico. A very important milestone that positions us as one of the most important terminals in the Mexican Pacific in 2024,” stressed José Antonio Contreras, CEO of Contecon Manzanillo.

The director said that with the investments they are carrying out they are looking to increase the capacity of this terminal in the coming years.

“In the coming years, thanks to the significant investments we are making, our capacity will increase by more than 40%, making us the most modern terminal with the highest capacity in Manzanillo. This year we will reach 1.4 million TEUs, compared to 1.2 million last year, and we plan to surpass this figure in 2025,” said Contreras.

In a statement, the company indicated that, in order to achieve its short- and long-term projections, it began its third phase of expansion in 2022 and expects to finish in 2025 , although since September 2024 it has already begun to receive part of the new yards and docks, gradually increasing its installed capacity.

This year’s investments include the acquisition of two STS cranes, the largest on the continent, as well as yard equipment such as RTG cranes with hybrid technology, port tractors, among others. In addition, the arrival of more machinery is expected in the coming months.

With these improvements, Contecon Manzanillo is looking for a significant increase in cargo volume and sustained growth for the coming years.

This development will benefit the local economy by generating new employment opportunities and will encourage the growth of local businesses that depend on port activity. In addition, Mexican trade will benefit from increased capacity at the country’s most important port, ensuring the smooth transit of goods for years to come.

These figures are relevant in the context that during the first 10 months of 2024, the port of Manzanillo accumulated the handling of three million 252 thousand 635 20-foot containers, which represented a growth of 6.6%compared to the same period in 2023, according to information from the Administration of the National Port System (Asipona) Manzanillo .

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El cargo CONTECON Manzanillo reaches 10 million TEUS apareció primero en T21.