AUTOMOTIVE IndUsTrY In MExIcO Ready to Overtake - ProMéxico
AUTOMOTIVE IndUsTrY In MExIcO Ready to Overtake - ProMéxico
AUTOMOTIVE IndUsTrY In MExIcO Ready to Overtake - ProMéxico
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38 Negocios <strong>ProMéxico</strong> Negocios <strong>ProMéxico</strong> 39<br />
german technology<br />
Manufactured<br />
in Mexico<br />
The German firm W. Voit Au<strong>to</strong>motive welcomes the current peak of the<br />
Mexican au<strong>to</strong>motive industry. For the company, this is the perfect time <strong>to</strong><br />
find and secure clients in the dynamic au<strong>to</strong> parts market.<br />
____<br />
by omar magaña<br />
pho<strong>to</strong>s courtesy of w. voit au<strong>to</strong>motive<br />
W. Voit Au<strong>to</strong>motive, the German firm specializing in<br />
production of metal parts for the au<strong>to</strong>motive, electronics<br />
and home appliance industries, intends<br />
<strong>to</strong> expand from western Mexico <strong>to</strong> the country’s<br />
El Bajío region, which has recently been the most receptive <strong>to</strong><br />
companies interested in developing cars demanded by the world<br />
market.<br />
After a decade of good performance in El Sal<strong>to</strong>, Jalisco, W.<br />
Voit has decided <strong>to</strong> expand its operations and install a second<br />
plant halfway along the industrial corridor created by large car<br />
manufacturers between Puebla, in the center of the country, and<br />
Monterrey in the north.<br />
“Studies on the au<strong>to</strong>motive market in Mexico tell us that the<br />
El Bajío region is projected <strong>to</strong> be the largest au<strong>to</strong>motive cluster<br />
in Latin America by 2015,” explains Thomas Oberthuer, the company’s<br />
CFO in Mexico.<br />
The goal is <strong>to</strong> enter the growth dynamic of this sec<strong>to</strong>r, which<br />
is the main consumer of steel and aluminum-stamped pieces for<br />
high precision applications produced by W. Voit since its founding<br />
in 1947 in St. <strong>In</strong>gbert, Germany.<br />
The brake systems that Continental produces in Mexico use<br />
W. Voit Au<strong>to</strong>motive membranes and inlaid shells. Bosch’s plant in<br />
Toluca purchases Voit Au<strong>to</strong>motive deep-drawn shells for its electric<br />
mo<strong>to</strong>rs. ZF Sachs, also located in El Sal<strong>to</strong>, buys products for its<br />
shock absorbers, while Valeo, with production centers in San Luis<br />
Po<strong>to</strong>sí, Aguascalientes and Ciudad Juárez, as well as Brose, in Hermosillo<br />
and Reynosa, requires frames, headers and other pieces<br />
manufactured by W. Voit for its cooling systems.<br />
“We could say that between 50% and 60% of our products leave<br />
the country –not only through us but through our cus<strong>to</strong>mers,” says<br />
Oberthuer. These days, the attention of the company is focused on<br />
the movements taking place in the states of Querétaro, Guanajua<strong>to</strong><br />
and Aguascalientes, where the Asian giants of the au<strong>to</strong>motive sec<strong>to</strong>r<br />
–including Mazda and Honda– have begun <strong>to</strong> set up shop.<br />
“There’s talk of future opportunities for the au<strong>to</strong>motive market<br />
in Mexico and about seeking a second location,” confirms<br />
Oberthuer. Oberthuer’s analysis of the au<strong>to</strong>motive market in<br />
Mexico is backed up by studies made by consultants such as<br />
PricewaterhouseCoopers, who continue <strong>to</strong> place Mexico among<br />
the world’s 10 major au<strong>to</strong>motive producers, on a list that includes<br />
countries such as China, Japan, the US, Germany, South Korea,<br />
Brazil, <strong>In</strong>dia, Spain and France.<br />
Figures show that the Mexican au<strong>to</strong>motive industry overcame the<br />
financial turmoil of 2008 in one piece and, as of 2009, production has<br />
maintained an average growth of 13%. Mexico produces 2.5 million<br />
units per year, of which 1.8 million are intended for export.<br />
According <strong>to</strong> the experts, Mexico has a steady flow of investments<br />
in this economic sec<strong>to</strong>r and also possesses skilled labor,<br />
traits that make it an attractive country for major industry players<br />
worldwide. Thus, the arrival of new assembly plants has activated<br />
all the supply chains linked <strong>to</strong> the industry and encouraged the<br />
formation of clusters of suppliers and service providers.<br />
W. Voit Au<strong>to</strong>motive perfectly exemplifies the exponential<br />
growth that au<strong>to</strong> parts companies have experienced over the past<br />
five years, even before the acceleration foreseen in the near future.<br />
The Mexican subsidiary of the firm was founded in 1998 from<br />
the merger of a Mexican company and Voit in Germany under the<br />
trade name Grupo Kervo, with equity shares.<br />
The company arrived in Mexico <strong>to</strong> become the leading supplier<br />
of stamped metal pieces for the Bosch plant in Toluca but a delay<br />
in the great technological conglomerate’s projects caused W. Voit’s<br />
operations <strong>to</strong> start slowly and the company did not begin production<br />
until 2001.<br />
Grupo Kervo’s first cus<strong>to</strong>mers included companies in the electronics<br />
industry from the Guadalajara metropolitan area and by<br />
the end of 2001 its sales volume had already reached a million usd.<br />
The main catalysts for the company’s development came soon<br />
after. The first was the consolidation of contracts with Bosch; the<br />
second, the bankruptcy of Grupo Ferrau, a competi<strong>to</strong>r in the production<br />
and sale of metal stampings in Mexico.<br />
Its business relationship with Bosch consolidated and in doing<br />
so became the leading company specializing in the development,<br />
stamping and finishing of metal parts, so W. Voit’s growth in<br />
Mexico was ensured.<br />
“The fact is, at first, there wasn’t a single company that could<br />
manufacture the parts with the <strong>to</strong>lerance tests required by Robert<br />
Bosch,” says Oberthuer. By 2004, the company had already registered<br />
a turnover of 15 million usd and in 2006, the assets of the<br />
Mexican partner were absorbed by the German group, at which<br />
time the company adopted the name by which it is now known.<br />
Currently, W. Voit Au<strong>to</strong>motive de México sales amount <strong>to</strong> 40<br />
million usd annually. The Mexican subsidiary is constituted as an<br />
independent entity, responsible for its own funding and in the last<br />
five years it has maintained a consistent investment of about 15<br />
million usd.“We see very strong growth for the company in Mexico;<br />
we want <strong>to</strong> develop a second line of technology within a three year<br />
time limit,” reveals Oberthuer.<br />
<strong>In</strong> addition <strong>to</strong> this new technology, W. Voit Au<strong>to</strong>motive considers<br />
it a priority <strong>to</strong> start production of its own <strong>to</strong>ols in Mexico.<br />
Currently, there’s a design team of nine engineers of different<br />
nationalities working in the company’s plant in El Sal<strong>to</strong>, which is<br />
w. voit has decided <strong>to</strong> expand its<br />
operations and install a second<br />
plant halfway along the industrial<br />
corridor created by large car<br />
Manufacturers between puebla,<br />
in the center of the country, and<br />
Monterrey in the north.<br />
certified in the development of stamping <strong>to</strong>ols –but their production<br />
is still being carried out in Germany.<br />
<strong>In</strong> order for that <strong>to</strong> happen, the company is also investing in the<br />
education and training of the staff at a plant that now has 418 employees,<br />
including designers, administra<strong>to</strong>rs and human resources<br />
in the workshop, production, logistics and quality control areas.<br />
“Last year we began with our own training program. We’re<br />
doing it in collaboration with the Center for <strong>In</strong>dustrial Job<br />
Training (CECATI); young people between 16 and 18 years of age<br />
are hired and they enter in<strong>to</strong> a dual system in which they spend<br />
three days in CECATI for theoretical and practical courses and<br />
an extra three days at the plant <strong>to</strong> learn all the processes,” explains<br />
Oberthuer.<br />
Other employees have scholarships in various areas of engineering<br />
from the Jalisco Technical University (UTJ) and the company<br />
is defining a new phase in its training endeavor, which will be<br />
<strong>to</strong> transfer a technical career specialized in the production of dyes<br />
from Germany <strong>to</strong> Mexico.<br />
Undoubtedly, this is the ideal time for W. Voit Au<strong>to</strong>motive in<br />
Mexico. The opportunities have been placed directly before it and<br />
the company is prepared <strong>to</strong> seize them. n<br />
www.wvoit.com