Bosch Following German OEMs To Mexico

Derek Kreindler
by Derek Kreindler
bosch following german oems to mexico

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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  • Xeranar Xeranar on Jul 04, 2014

    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.

  • Vipul Singh Vipul Singh on Jul 05, 2014

    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!

    • See 1 previous
    • Erzsebet Erzsebet on Jul 05, 2014

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

  • SoCalMikester SoCalMikester on Jul 05, 2014

    just makes sense for suppliers to be where the factories are

    • See 1 previous
    • Tresmonos Tresmonos on Jul 06, 2014

      @highdesertcat 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.

  • Corey Lewis Corey Lewis on Jul 07, 2014

    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.