By on July 4, 2014

bosch-automotive-logo1

Bosch is set to follow German OEMs like Daimler, BMW and Volkswagen and set up manufacturing facilities in Mexico. The investment, said to be worth as much as $544 million, will be good for 3,000 jobs, according to Reuters.

The investment will not only cover factory jobs, but also high value R&D jobs thanks to a new research center that will be built. Aside from lower labor costs, Mexican plants give European auto makers access to North American markets covered under NAFTA, as well as other Latin American countries.

 

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13 Comments on “Bosch Following German OEMs To Mexico...”


  • avatar
    LALoser

    Communist China know about this?

  • avatar
    Lorenzo

    I wonder if this kind of move by German companies has more to do with the prospects of the Euro than diversification, Mexico, or NAFTA. My brother in law is a retired exec from an investment company, and he’s been pulling his retirement investments out of Euro-zone dependent businesses for a couple years now.

  • avatar
    VenomV12

    Congratulations, you didn’t want Mexicans coming over the border, looks like these companies are solving that problem for you. Side effect is thousands of good paying jobs won’t be coming here either. You win some you lose some I guess.

  • avatar
    Xeranar

    Mexico’s the 14th largest economy in the world. It ranks only behind 3 countries we generally would consider less than 1st world and those 3 either have vastly larger populations, land areas, or oil reserves than Mexico. Mexico largely does it by having a similar makeup to the United States but their average income is 15% of ours. Their economy is based on supplying cheap labor while slowly trying to build their own economy but as a cheap supplier they’ll never break the cycle.

    Then again I’m with Cardenas on this matter, Nationalizing the oil and agrarian lands owned by US firms was the best thing they could do for Mexico, too bad his conservative successors were too eager to sell it all back to the US for cheap gains in manufacturing.

    But I digress….What is done is done. The likelihood of breaking up the current trade agreements are still atleast a decade or more away but atleast discussion on that topic is starting to enter the picture one more.

  • avatar
    Vipul Singh

    But i have see a variety of “made in Mexico” Bosch components over the past 4 years at least. Not sure aboit the “following” part. Bosch is already there!

    • 0 avatar
      highdesertcat

      Yup, I bought a brand-new (not rebuilt or remanufactured) Bosch Alternator for a Chevy truck at Autozone a few years back and it had been made in Mexico.

      Also, the Platinum Spark Plugs I have used over the years had been made in Mexico.

      So this must be an expansion of Bosch in Mexico. And I think it is the smart thing to do for all manufacturers who do not want to be harassed by the UAW and other American unions.

      Mexican unions are just ecstatic to have the jobs and the income. And it keeps more of their own people at home! Instead of over here.

      Now all we have to worry about are the welfare cases of kids and mothers from Central America coming into the US illegally.

    • 0 avatar
      erzsebet

      Uh yeah…Bosch has had multiple plants in Mexico for a while. Not really sure what the “news” is here.

  • avatar
    SoCalMikester

    just makes sense for suppliers to be where the factories are

    • 0 avatar
      highdesertcat

      Yes, but NAFTA alleviated all that because of the free-flow of goods allowed across the borders.

      The Maquiladoras along the border set the precedence, NAFTA opened it up to nationwide trade and the big companies took the ball and ran with it, ensuring greater profitability for their owners and shareholders.

      It is a blow to the American unions to be sure, but infinitely better, more profitable and a smoother operation for big companies that do not want to be distracted by union-harassment of their operations.

      Smart move!

      • 0 avatar
        tresmonos

        There are always exceptions. TTI. Borg Warner. Magna Decoplas. In sourcing happens. And resourcing to Mexico I’m sure will happen. Mexican operations are only as good as your Operating Systems. I’ve seen first hand what happens when Quality Operating Systems aren’t followed and I attribute it to Mexican culture. Mexicans can be push overs to suppliers.

        I’m right now being bullied by a Mexican OEM final assembly plant, which as been proving my theory wrong… but my Supplier Quality Engineer is a younger Mexican (I think the gen X’ers in Mexico are going to make their economy boom) and he loves to kick the sh1t out of me. I’m buying him some American Made cowboy boots to make him happy so I don’t have to go down there and get my nose put in sh1t, again.

        Not everything is union. And not all union is bad. Some of the best workforces I’ve dealt with were UAW.

  • avatar
    CoreyDL

    You know, I would drive a Bosch branded vehicle. It could be solid and handsome looking, and very serious. Their logo would look nice on a grille.

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