Audi Wants 90% Local Sourcing in Mexico image

According to Audi purchasing chief management board Bernd Martens, the automaker plans to purchase 90% of its components for the Mexico plant from local sources.

This would be the first time when an Audi plant will buy almost all the necessary components from local sources. The plant can manufacture 150,000 vehicles annually and is located in southeast Mexico. Beginning 2016 the facility will manufacture the Q5 crossover for Japan, Europe and the Americas. Audi has already invited 120 Mexico suppliers to a workshop, as the company aims at those which manufacture parts with very high investments, and have paint and press facilities.

Bernd Martens said that for the Q5 production the company will need around several hundred suppliers, but only 120 suppliers will be used for the main components and technologies, including pressed parts, plastic parts and harnesses. There are also several special technologies which cannot be offered by local Mexico suppliers, for example for the production of leather, chrome or paint, door paneling, control panels and interior equipment.

“We want to reach 90 percent in about three years, figured from the production launch in 2016. We want to source as much as possible from Mexico. In the next step, what we don’t get from here we want to obtain from North America, that is, the U.S. and Canada, because we want to purchase as much as possible in the dollar zone,” said Martens.

Source: Autonews