ArvinMeritor wants to more than triple purchases of Mexican components for parts used in assemblies supplied to major Mexican vehicle makers, Reuters reported, citing company executives.
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Reuters said ArvinMeritor would like to boost contracts with local parts producers currently worth $US30 million to $110 million.
ArvinMeritor’s four Mexican plants make about 30% of the products it sells to Mexican companies, while the other 70% are imported, Reuters said.
Shock absorbers, roofs, doors, tyres, sun roofs and air conditioners are supplied to Mexican vehicle assembly factories run by Volkswagen, Ford, General Motors and Nissan, Reuters added.
Reuters said about 60% of ArvinMeritor Mexican output is for the local market – mostly in components for cars that are exported – with the remaining production shipped overseas.
An ArvinMeritor official told Reuters said the Mexican plants are operating with inventories reduced by up to 50% to make way for local suppliers.
“Whenever possible we would like to produce our products very close to our customers and component suppliers,” the official told Reuters.
