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.
Go deeper with GlobalData
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
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.
