Volkswagen’s Mexico unit looking for local toolmakers

Article by Christian Andrei, on August 25, 2010

A senior company executive from Volkswagen AG seeks to convince toolmakers of its assembly complex in Mexico (which is its only one in North America) to establish operations near the facility in Puebla. Thomas Karig, vice president of corporate relations and strategy, said that mold makers have a great opportunity at the Puebla facility.

He added that the toolmakers of this facility, which is found 75 miles southeast of Mexico City, have the best chance of engaging in business with Volkswagen in Mexico.

He clarified though that currently, most molds used by VW in Puebla are imported (mostly from the US and Canada) with suppliers' technicians being forced to travel constantly to and from Mexico.

This is precisely the reason why he thinks that more toolmakers have to set up operations in Puebla. During the two-day conference on the hurdles experienced by the Mexican plastics industry, Karig talked about VW's determination to cut its reliance on euro-sourced supplies in Mexico and to raise the percentage of parts and components sourced in dollars, which applies to suppliers in Mexico as well as in the US and Canada.

Karig added that the company aims to hit 90%. Last year, the company had only posted about 60%. He said that in April, VW started to build the sixth generation Volkswagen Jetta for world markets at a new $1 billion extension in the Puebla complex.

Topics: vw, mexico, production

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