Audi México sets focus on local suppliers

Audi México is creating jobs in the NAFTA region with its ambitious localisation strategy. In the medium term, well over 65 percent of all sourced parts for the Audi Q5 SUV will come from North America, with this to increase to 90 percent in the long term. More than 20,000 jobs could be created over the next 10 years, roughly 1,000 of these at a supplier park south of the Audi plant in San José Chiapa.

Audi Board Member for Procurement Dr. Bernd Martens and Puebla Governor Rafael Morena Valle Rosas were on site yesterday for the groundbreaking ceremony. The first phase of the JIS (just-in-sequence) Supplier Park is scheduled to begin operation in late 2014. Series production of the second-generation Q5 for the global market begins in 2016.

“We expect strong growth in North America and are committed to an equally ambitious procurement strategy,” said Martens. “With the very high localisation rate, top-class qualification of our local suppliers is also extremely important.” Local content is expected to be 65 percent when production of the Audi Q5 begins, and will later increase to 90 percent. Supplier selection is currently underway.

Two-thirds of the more than 200 requests for tender for parts such as windscreens, tyres and cockpit electronics have already been completed. Premium quality and delivery reliability are the primary selection criteria. “That applies worldwide, regardless of the production location,” said Martens.

Seven of the more than 100 suppliers from the NAFTA region will move into the supplier park, which in the first phase of development will occupy 24,000 square meters (258,333.85 sq ft). Klaus-Peter Körner, head of production Audi México: “Efficient logistics are essential in order to build the Audi Q5 according the individual wishes of the customers. The tight integration of the suppliers into the plant enables fast and efficient processes.”

Around 1,000 people will be employed at the JIS Supplier Park in San José Chiapa, from which they will supply the Audi plant with components just in sequence. The high localisation rate will create a total of 20,000 jobs in the region.

Image: The first phase of the Just In Sequence Supplier Park is scheduled to begin operation in late 2014. Series production of the second-generation Audi Q5 for the global market begins in 2016. In the medium term, well over 65 percent of all sourced parts for the Audi Q5 will come from North America, with this to increase to 90 percent in the long term.