Audi may be locating its first North American plant in Mexico, but the establishment of the company’s first manufacturing footprint on the continent is meant to expand its relationship with the supplier community in the United States and Canada too.
AUDI AG has invited dozens of suppliers and more than 200 people from across North America to its first-ever Supplier Day on August 20 at the plant site in San Jose Chiapa. The company’s goal is for about 90 percent of the value of each Q5 crossover produced in Mexico to come from suppliers, materials and processes based in Mexico, the U.S. and Canada.
Audi has worked with the plant’s suppliers throughout the supply chain, well beyond the Tier One level and to unprecedented lengths, to ensure that quality standards are met.
Three years prior to plant opening, suppliers were going through up to 10 modules to prepare them to work with Audi. Once Audi meets its supplier objectives, an estimated 20,000 indirect jobs would be created throughout North America at supplier facilities, in addition to the 1,800 Mexicans who are expected to be employed by Audi at the plant.
At this point, Audi executives have said they are about two-thirds of the way to fulfilling the 90-percent goal.
One reason for the Supplier Day is for would-be suppliers to explain and demonstrate their capabilities to Audi executives and to meet with members of the Audi of Mexico team to see where relationships can develop.