One year after construction started in Mexico, progress on the plant scheduled to produce Audi’s Q5 SUV in México from mid-2016 is noticeable and work on the building shell is advancing rapidly, the automaker said.
Employee training activities have begun and 700 local workers have been hired. With the newly created supplier network, 65 percent of value creation can now take place locally.
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“Construction work is proceeding on schedule,” said Audi production chief Hubert Waltl. “And that’s also very important, since the plant in Mexico is a key component in our growth and internationalisation strategy.”
By the end of 2014, all of the construction work will have been weatherproofed, at which point equipment can start to be installed at the San José Chiapa site. The plant building construction site office opened last January with 250 new jobs and construction of the press shop, paint shop and offices will soon be completed.
The employee training centre will begin operations in September. It will serve as the central building for training activities ahead of the start of production in 2016.
In addition to the 700 factory recruits to date, Audi has also hired 100 young people for apprenticeships in four fields. These vocational training programmes follow the German model, and will last three years.
Audi said there had been great interest in jobs: since the online application tool went live in August 2013, more than 50,000 candidates have applied, most with a college [university] degree. The plant will eventually empliy around 3,800.
Most future suppliers have now been identified with over 130 suppliers on board to date. Three quarters are based in North America and 20% in Europe.
Audi this claims “more than 65% of value creation can take place locally”.
This is essential so the Q5 can be exported duty-free worldwide from Mexico.
Procurement head Bernd Martens said: “In the medium term we are striving to achieve even 90% localisation. This generates a great employment effect. In the next 10 years there will be 20,000 jobs created in the area.”
Excavation for construction of the new just in sequence (JIS) supplier park south of the plant site started recently. About 1,000 people will work there, delivering parts in sequence to the Q5 assembly line.
The plant will eventually build about 150,000 a year for sale worldwide.
