Manufacturing Trends

3

Manufacturing Trends

New technologies are transforming manufacturing processes, while innovative materials are replacing their traditional counterparts, fundamentally changing the nature of vehicles. These changes are expected to improve the driver experience and strengthen supply chains.

Materials like foam and plastic are replacing heavier options. Simultaneously, plastic injection and additive manufacturing are aiming to improve delivery times and quality. Although these changes aim to help the vehicle adhere to industry trends, such as automation, their main objective is to offer the user safer and more efficient mobility solutions.

Scientific advances have been essential for the sector to continue evolving. Nanotechnology, for example, is introducing new materials and solutions to improve designs, while helping the industry to transition to recyclable materials.

This chapter will address the benefits of adopting new manufacturing technologies and the benefits of using alternative materials for building the car of the future. It will also focus on how Mexico can leverage these opportunities to continue being a referent in manufacturing, while it works to gain relevance in automotive design.

3Manufacturing Trends

40 Analysis

Material Technology’s Pivotal Role in Industry Transformation

42 View From the Top

Alex Zúñiga | Research Group Leader | Tecnológico de Monterrey

43 View From the Top

Fadi Abro | Director of Automotive Business | Stratasys

44 Conference Highlights

Innovation in Material Technology Key for Automotive Sector

45 View From the Top

Felipe Villarreal | CEO | Alian Plastics

46 View From the Top

Gerardo Angulo | Country Manager Mexico | The Timken Company

47 View From the Top

Saulo Guzmán | General Manager | Wieland Metal Services Queretaro

48 Conference Highlights

Infrastructure, Consumer Readiness Underpin EV Takeoff

49 View From the Top

Udo Storck | Managing Director | Masterfoam Group

50 View From the Top

Tomoaki Inoue | President | JATCO Mexico

51 View From the Top

Alberto Bustamante | Director General | INA

52 View From the Top

Miguel Pacheco Ancona | Country Manager Latin America North | Bridgestone

53 Content Links

42 | Manufacturing Trends

Material Technology’s Pivotal Role in Industry Transformation

LIGHTWEIGHT VS. TRADITIONAL MATERIALS

Lightweight Material Mass Reduction (percentage)

Magnesium

Carbon fiber composites

Aluminum and Al matrix composites

Titanium 30-70

50-70

30-60

40-55

Glass fiber composites 25-35

Advanced high strength steel 15-25

High strength steel 10-28

Source: US Office of Energy Efficiency & Renewable Energy For decades, steel and metal alloys have been the preferred materials for vehicle manufacturing, mainly because of their performance and cost. However, current industry trends demand more advanced materials to boost the fuel economy of modern vehicles, while maintaining safety, performance and cost-effectiveness. The industry’s adoption of e-mobility and sustainability trends will be enabled by constant innovation in lightweight materials, magnesium and aluminum alloys, highperformance polymers and 3D-printing, among others.

Lightweight materials offer great potential for increasing vehicle efficiency, as it takes less energy to accelerate a lighter object than a heavier one. A 10-percent reduction in vehicle weight can result in a 6-8 percent fuel economy improvement, according to the US Office of Energy and Renewable Energy (EERE): “Replacing cast iron and traditional steel components with lightweight materials, such as high-strength steel, magnesium alloys, aluminum alloys, carbon fiber and polymer composites, can directly reduce the weight of a vehicle’s body and chassis by up to 50 percent and, therefore, reduce a vehicle’s fuel consumption.”

Vehicles are increasingly incorporating new technology components, emission control systems and safety devices. With lightweight structural materials, cars can carry additional components without increasing the overall weight of the vehicle. To replace steel, however, materials must deliver high strength, energy intensity or the ability to absorb impact, manufacturability, minimum weight, corrosion resistance and maintainability, according to the paper, Modern Materials for Automotive Industry, published by Havorun et al in the Journal of Engineering Sciences. Moreover, although lightweight materials are important for any vehicle, they are especially important for HEVs, PHEVs and BEVs. Lightweight materials in these vehicles can offset the weight of power systems, such as batteries and electric motors, improving efficiency and increasing their all-electric range, according to EERE.

The average vehicle body in the US fleet today is 65 percent steel, 13 percent aluminum, 4 percent magnesium, 6 percent plastic and polymer composites and a variable percentage of glass, adhesives, sealers and foam, as reported by MBN. While automakers continue exploring and developing alternative materials, copper will remain an essential raw material, says Saulo Guzmán, General Manager of Wieland Group. “EVs require a lot of copper. So far, it is used in motors, batteries, inverters, wiring and fuses.” However, EVs require new copper alloys composed of “more specific materials, not the regular copper we used to have in the past.”

Short-Term Lightweight Materials Research In the short term, R&D is mainly focused on replacing heavy steel components with materials like high-strength steel, which is stronger and more ductile than typical steel. Advanced high-strength steel can reduce component weight by up to 25 percent, according to EERE. The material can also improve the vehicle’s performance in crashes, while still allowing suppliers to manufacture components using conventional techniques.

Read the complete article Aluminum alloys represent another important alternative. Aluminum car bodies have already reached mass production, although only for expensive models. Premium brands tend to experiment with aluminum alloys, including Jaguar-Land Rover, Audi and BMW, as reported by MBN. Thanks to its use in aerospace and construction, scientists have a good understanding of aluminum’s characteristics and processing, says EERE. The main persisting issues with aluminum alloys are cost and manufacturing, in addition to issues with joining, corrosion, repairs and recycling when the metal is combined with other materials. The US Vehicle Technologies Office is working with The Pacific Northwest National Laboratory and Ford to improve how manufacturers pre-process sheets of aluminum to increase formability during stamping.

Long-Term Lightweight Materials Research Advanced materials, such as magnesium and carbon fiber reinforced composites, could reduce the weight of certain vehicle components by 50-75 percent, according to EERE. While magnesium can reduce component weight by over 60 percent, its use is limited to less than 1 percent of the average vehicle by weight. The main barriers for magnesium’s scalability in the short term include the raw material’s high cost and price instability, difficulty to form a sheet with it at low temperatures, low ductility of finished components and difficulties to join, repair and recycle when used in multimaterial systems. Magnesium is used in gearboxes, steering columns and driver’s air bag housings, as well as in steering wheels, seat frames and fuel tank covers. The desire to identify solutions and opportunities regarding the use of magnesium in vehicles has been growing over the past years, according to the International Magnesium Association.

Carbon fiber reinforced polymer composites, on the other hand, can reduce component weight by over 60 percent. However, automakers use this only in high-performance vehicles due to costs of the input material and required processing, according to EERE.

3D Printing: A Feasible Alternative? Originally used only for prototyping, additive manufacturing (AM), also known as 3D printing, is disrupting the automotive value chain and finding its way into more industrial processes. AM can now be used in numerous processes, says Sebastián Romo, CEO of Tridi. The automotive and aerospace industries have been the biggest adopters of 3D printing but the way the automotive sector uses this technology is changing. “OEMs are increasingly using this technology. Almost all OEMs in Mexico own a professional or an industrial (3D printing) machine,” says Romo.

While the adoption of AM in the automotive sector is challenging due to cost factors, it is a useful tool during supply chain disruptions. “During assembly, AM helps to print all the needed components while the supply chain catches up. While 3D printing raises the price per piece, it prevents supply chains from stopping,” says Adi Fabro, Director of Automotive Business at Stratasys.

The potential of AM is significant. In the future, vehicle bodies could become 3D-printed, enabling not only lighter vehicles but a path to a future of rapid customization and personalization of cars, going from unique design to computer modeling and printing in days rather than years, according to the Society of Plastics Engineers. In the future, new companies could enter the automotive industry aiming to build 3D-printed cars that meet both government safety standards and consumer performance expectations.

Alex Zúñiga

Research Group Leader | Tecnológico de Monterrey

Nanotechnology Adds Value, Solves Problems

Read the complete article

More about this person Q: How are electrification and efficiency trends driving innovation in raw materials and manufacturing operations?

A: Most companies are trying to reach zero emissions by 2050. By prioritizing sustainability and the creation of new materials and processes, the automotive industry will be able to produce EVs and reach those zero-emission goals. The circular economy and the recycling of materials are essential for the achievement of electrification goals but we also need new materials that reduce the weight of components, specifically EV batteries. This is an enormous challenge because we have to come up with new components while we fulfill standards and regulations. We also need to implement new manufacturing technologies. While many are interested in additive manufacturing, it currently cannot fulfill industrial requirements due to its low-volume production processes. However, companies are trying to generate new processes to achieve high-volume production.

Q: How can nanotechnology be applied to improve efficiency, reduce costs and make EVs more sustainable?

A: Developing lasting batteries is essential. The challenge is to increase battery life and vehicle efficiency. With nanotechnology, we are developing new materials that take advantage of the porosity and the fragile structure of some materials to increase the capacity and efficiency of batteries. These efforts aim to generate long-lasting batteries and reduce their weight. By achieving the latter, we will be able to increase the autonomy of EVs. Sustainability also plays an important role because the automotive sector demands eco-friendly manufacturing processes and recyclable components. Hydrogen has been globally used to make EVs more sustainable. The problem in Mexico is that we do not have many related initiatives.

The automotive sector is looking for new materials that can improve the capability and strength of vehicles, while reducing their overall weight. For this, we are exploring new technologies and developing hybrid composite materials, which are the result of a combination of carbon fibers and metallic components. With these materials, we can develop components that can reduce weight and address structural and durability issues. We are also working on force composite materials for the aerospace industry. We want to create materials that are mechanically efficient and provide high conductivity and thermal dissipation. We are working with a global electric company to develop materials to reduce the size and weight of some vehicle parts. If successful, this project will have a significant impact on EVs.

Q: What efforts are needed to boost the transformation of the automotive industry in Mexico?

A: Before, our main challenge was to convince leaders in the automotive industry that nanotechnology offers a competitive advantage. This is widely known now. We have been working with an engine manufacturer that is concerned about the fading prevalence of internal combustion engines. For this reason, the company wants to create new products that can add value to EV manufacturers by developing materials to replace aluminum with hybrid composites. Other companies are exploring replacing thermoset materials with thermoplastic. At Tec de Monterrey, we created thermoplastic materials with very similar properties to thermoset materials, proving that this is a cost-effective solution.

Fadi Abro

Director of Automotive Business | Stratasys

Mexico’s Automotive Sector to Benefit From Additive Manufacturing

Read the complete article

More about this person Q: What has been Stratasys’ role in the adoption of additive manufacturing by the automotive manufacturing industry?

A: The sector has been using additive manufacturing longer than any other. Prototyping is the necessary evil of creating a product but the more prototyping a company does, the more it prevents future problems. Prototyping allows developers to identify potential production problems that many customers will face.

The automotive sector produces a new vehicle every 50 seconds, so the industry has little time to fix unexpected issues. It needs to prototype. 3D printing has helped the industry prototype products for over 30 years, allowing it to identify future problems. For example, a test drive of a prototyped vehicle can provide manufacturers with live feedback from focus groups, allowing the company to give customers what they really want.

Q: How has Mexico adapted to additive manufacturing and how open have companies been to this solution?

A: Mexico has been a hub for manufacturing rather than design, which happens mainly in California or Detroit. One of the biggest challenges the automotive sector faces is the limited availability of talent. Recent engineering and design graduates are not enough to cover the talent demand. Mexico can use additive manufacturing for printing surrogate parts (non-functional substitutes of high-value parts). By 3D printing surrogate parts, factories do not have to wait for parts to be delivered before starting the prototyping process, shortening production time and cost. Many of the challenges the sector is facing require new methods of assembly and the best way to support assembly is through surrogate parts.

Q: What role is additive manufacturing playing in the supply chain crisis?

A: During assembly, additive manufacturing helps to print all the needed components while the supply chain catches up. While 3D printing raises the price per piece, it prevents supply chains from stopping. In tooling, the main problem is the low volumes involved and the high value of the pieces, which is a problem because few suppliers are willing to manufacture only a few pieces. Through additive manufacturing, a supplier can provide the design and send it to a printer, avoiding complications.

Q: What are the benefits of investing in tooling innovations and services?

A: In tooling, additive manufacturing saves money and time and provides high-quality products. Numerous materials can be replaced by less expensive alternatives during tooling. For example, aluminum can be replaced by polymers or plastic components with the same functionality. Additive manufacturing is always faster than other alternatives. A piece that would take five days to produce through other means can be printed in 10 hours.

Tooling can also help companies achieve better quality. For example, we are seeing numerous model changes during the transition of ICE vehicles to EVs. This change involves the entire vehicle and if a part is missed, it should be adjusted. During this process, 3D printing the necessary tools can help perform these changes faster, leading to products of better quality.

Innovation in Material Technology Key for Automotive Sector

Felipe Villeral

CEO | Alian Plastics

Sebastián Romo

Managing Partner | Skala Ventures Carlos Gómez

Purchasing-SQM Director | Continental José Luis Treviño

Vice President Strategic Planning | Metalsa Alex Elías Zúñiga

Research Group Leader of Nanotechnology for Device Design | Tecnológico de Monterrey

Read the complete article As materials play a critical role in the deployment of green solutions, automakers are searching for more advanced building materials to boost fuel efficiency and performance, while providing more cost-effective and safer vehicles.

Materials like steel and metal alloys were the standard for the sector but automakers have not shied away from exploring alternatives. “Material science has always been present in automotive development, helping to make cars safer and more efficient,” says José Luis Treviño, Vice President of Strategic Planning, Metalsa.

New opportunities represent diverse challenges for the industry. In the future of materials, sustainability of the entire supply chain is key for both consumers and automakers. Companies must know and understand their carbon footprint throughout their entire supply chain. “Sustainability is the future of materials. We must become more environmentally friendly in our material choices and strive for circular processes,” says Carlos Gómez, Purchasing-SQM Director, Continental Mexico.

Additive manufacturing (AM) can help automakers find the solutions they need to produce lighter pieces and reduce fuel consumption. While this technology has existed since the 1980s, the democratization of 3D printing has allowed for major advances in the production network of parts for trucks and specialized vehicles, says Sebastían Romo, Managing Partner at Skala Ventures. The industry should still seek new ways to provide for better and more efficient materials that allow for a more efficient and sustainable sector, however, experts say.

Nanotechnology will play an essential role in the future of materials, as it can target specific problems. “It gives us the ability to manipulate at molecular levels the structures of materials and add other desired functionalities,” says Alex Elías Zúñiga, Research Group Leader of Nanotechnology and Device Designing, Tec de Monterrey.

The industry’s future relies on material technology so key players in both the private and public sectors need to continue betting on sustainability and security by putting their investments where their needs are. “Innovation and technology development cannot happen without continuous investment in scientific research,” says Felipe Villareal, CEO of Alien Plastics.

Felipe Villarreal

CEO | Alian Plastics

Diversification of Markets, Suppliers Key for Success

Read the complete article

More about this person Q: What are the trends that Alian Plastics has detected within the automotive sector and what are its main challenges in keeping up with production?

A: Changes in the automotive industry have opened up opportunities for Alian Plastics, mainly to serve the EV market. We provide components for Tesla’s Model 3 and we just won a program for the Model Y, which will be manufactured in San Antonio, Texas. EVs, and vehicles in general, are turning to plastics and aluminum as the ideal lightweighting materials.

During the pandemic, there was not enough human capital to produce the raw materials we required, so we ran out of components for our resin extractors. The plastic injection market is seeing a large boom but resin extractors remain the same and their capacity to produce has decreased. Some days are better than others as suppliers may run out of raw materials at any time. There is constant tension and uncertainty.

Q: What strategies has Alian Plastics implemented to secure supplies in this difficult environment?

A: Internally, we increased our purchase orders to have more inventory available. Previously, the lead time was four to eight weeks depending on the resin but now suppliers are asking for a lead time of 24 to 28 weeks.

Most of the components we produce, such as those for Audi, BMW and Tesla, use directed resins. We can find additional suppliers to produce those specific resins. Diversification remains key, not only regarding different markets and industries but also with suppliers. Doing this can save companies not only in the present situation but also in the future.

Q: How is Alian Plastics investing in new processes, technologies and machinery to improve operations?

A: Quality and timely delivery are at our core. Talent is behind our success in both areas but people require tools to work with. Alian Plastics has invested in measurement tools for its metrology laboratory, 3D arms to scan parts and an Industry 4.0 system that detects problems in real time and sends alerts immediately. Our entire staff is alerted when a machine stops. They immediately know the reason for the stoppage and the person responsible for fixing it. In addition to addressing the problem and allowing operations to continue, the system has inadvertently created a healthy competition within the team. No one wants to receive an alert that a machine has stopped due to lack of maintenance or material. This technological approach has helped us a great deal.

Q: How does Alian Plastics work to make the most of its technological tools?

A: The best result is obtained by taking into account the opinion of the user, whether it is the operator, metrologist, quality manager or maintenance manager. They are the ones who enrich these tools. If we do not listen to their needs as we listen to those of our customers, we cannot get the most from our investment in those tools.

Gerardo Angulo

Country Manager Mexico |

The Timken Company

Timken to Continue Growing Its Mexican Footprint

Read the complete article

More about this person Q: How does Timken contribute to vehicle lightweighting?

A: We are constantly innovating to serve different industries and emerging trend. In the automotive sector, new bearing design and materials features enable vehicles to incorporate smaller bearings with the same working conditions. In particular, Timken’s products can offer innovative bearing surface finishes, lubricants and internal design geometry that reduce wear and make products more efficient by accommodating higher stress operating conditions with smaller bearing sizes. The use of smaller power-dense bearings can contribute to reducing vehicle weight.

Q: How has the Guanajuato plant increased the company’s competitiveness in the Mexican and North American markets?

A: Our Guanajuato location builds on the company’s manufacturing strategy to serve customers where they need us. Our plant uses state-of-the-art technology and automation to achieve the standards for quality and consistency Timken employs around the world. What we are doing here in Guanajuato helps us advance our global bearing leadership by providing a high level of value and service for our customers in the region and globally.

Q: How has the company worked to secure supplies amid the global disruption?

A: It has been challenging, but we have strong relationships with our suppliers and we have been focused on improving every day. Despite significant disruptions to supply chains as well as inflationary pressures, these are still good times for industrial markets.

Q: How does Timken address the aftersales battle between quality and low cost?

A: We strive to be as competitive as possible. We maintain the same high standards for quality and consistency at all of our manufacturing sites around the world.

Q: What role does the aerospace industry play within Timken’s operations in Mexico?

A: We are trusted across the aerospace industry because of our performance and safety requirements. The company has a division focused on aerospace technology serving global customers. In Mexico, we provide components used primarily in aircraft interiors.

Q: How could the acquisition of Aurora boost the company’s participation in the Mexican aerospace sector?

A: We are working to integrate Aurora products into our portfolio. We are very pleased with the opportunities the acquisition creates for us, but it is too early to say what impact that may have for our business in Mexico.

Q: What are your plans for the near term in Mexico?

A: We are continuing to build capacity and expertise and look forward to serving customers in the region and globally – for years to come.

Saulo Guzmán

General Manager | Wieland Metal Services Queretaro

Securing Copper Demand Amid Global Shortages

Read the complete article

More about this person Q: How has Mexico’s vehicle production crisis impacted demand for WMSQ’s copper?

A: Copper is required in many industries. Although the automotive sector went from representing 50 percent of our copper sales to only 27 or 30 percent, diversification has allowed WMSQ to keep its business running. Building and construction demand, for example, has increased, compensating for the decline in sales to the automotive industry.

Q: Considering the importance of diversifying the business, what are the challenges to enter the aerospace sector?

A: There are several barriers for suppliers to enter the aerospace industry. The AS9000 certification is difficult to obtain. While entering the automotive supply chain is not easy, due to quality and traceability controls, the aerospace industry is more restrictive. Every product is intensely inspected and, usually, you need to build relationships with OEM-approved brass mills. Even if a product meets all specifications, you can only buy it from approved suppliers.

Although products have a large profit margin, volume is very low. The aerospace sector is profitable but if your structure was created to serve the automotive industry and its high levels of required volume, it is difficult to transform into an aerospace supplier, where projects have a longer life span and volumes are much lower. Very few companies have the capability to adapt but WMSQ is one of them.

Q: What strategies has WMSQ implemented regarding EV growth?

A: The group has made a number of investments in recent years. In December, it announced a US$50 million investment to increase casting and the production of special alloys at our brass mill in Illinois. This project will begin production by 2025. In addition, the company has invested in secondary processes, which are important to give shape to castings.

Regarding strategies in Mexico, we will open a branch office in Juarez, Chihuahua, to position ourselves in the north of the country. Part of the strategy has to do with EVs because. While Juarez does not have a long automotive history, it is an industrial city and it can develop auto parts. In addition, we will be covering all central north region of Mexico from our new branch office.

Q: How has USMCA influenced WMSQ’s operations?

A: Copper was completely left out of the discussion regarding the rules of origin, which is understandable because vehicles have much more steel and aluminum than copper. In terms of regional content, USMCA did not help us; however, the nearshoring boom that the country is experiencing does benefit WMSQ.

Q: How has WMSQ benefited from its IMMEX status?

A: IMMEX certification is a great competitive advantage. Copper itself is an expensive material and paying an extra 16 percent for an expensive product would pressure any company’s cash flow. For WMSQ, IMMEX is almost like a requisite to operate and the biggest benefit is for our clients. This certification allows us to import products tariff-free from Asia, the US and the EU, where we have developed our supply chains.

Infrastructure, Consumer Readiness Underpin EV Takeoff

Mark Sánchez

President | ANVES

David Zambrano

COO | Maserati Mexico, Rolls-

Royce Motor Cars Mexico

Enrique Mendoza

General Manager | Beat México

Alfonso Reyes

Plant Director | ZF

Mauricio Rosales

Carbody Sales Manager IQS-MX | Zeiss

Favorable policies have served to signal a willingness to support the successful rollout of EVs, despite significant barriers, including limited supporting infrastructure and little certainty on returns, according to industry leaders. Nevertheless, Mexico has a strong underlying network infrastructure, so “investors should keep an eye on this as a developing opportunity,” according to ARCADIS.

The country, experts say, is poised for a leading regional role in the segment. “Mexico will be an important part of international electromobility and will continue to spearhead the Latin American automotive industry,” says Mark Sánchez, President, National Association of Electric and Sustainable Vehicles (ANVES).

ICE transport accounts for 21 percent of global carbon emissions, which makes it the largest emitting sector in many developing countries, according to the World Economic Forum. In the face of recurring and increasingly devastating extreme weather events, this data has helped propel a public-led interest toward tackling transport emissions. ANVES has been working with the private and public sectors at the local and federal level to establish an official standard for the conversion of ICE vehicles into 100 percent EVs. This is a primordial step because “a challenge to the expansion of mobility electrification is that combustion cars remain more affordable than electric vehicles,” says Enrique Mendoza, General Manager of Beat México. “In Mexico, we need a cultural change that allows us to lose our fear of EVs and to trust in technological advances,” says Alfonso Reyes, Director General, ZF Powertrain Modules Saltillo SA.

Despite a concerted effort to bridge the electrification gap, there are still extraneous elements that threaten to hamper Mexico’s intended transition, such as its limited access to raw materials. While there have been efforts to reorganize global supply chains with the adoption of technology applications, sustained complications threaten to curtail “the electrification wave drastically from one moment to the next,” says Mauricio Rosales, Carbody Sales Manager IQS-MX, Zeiss.

“EV supply is growing in different segments, offering more accessible options for diverse purchasing powers,” says Reyes. Within this early market space, Mexico’s “premium segment is the one buying more EVs. These are the brands that have managed to bring more fully electric vehicles to the market,” says David Zambrano, Operations Director, Maserati México and Rolls-Royce Motor Cars México.

Read the complete article

Udo Storck

Managing Director | Masterfoam Group

Foam: Common Denominator Between EVs and ICE Vehicles

Read the complete article

More about this person Q: How is Masterfoam facing international challenges?

A: We had to adapt our purchasing strategy. We used to buy raw materials from the EU but prices grew fivefold, leading us to look for local suppliers. This was not easy but we tried to include our customer base in this decision as much as possible. All companies are suffering from high prices, especially in the automotive sector. Compared to these crazy high prices, it almost feels like COVID-19 was easier to solve

Q: What other opportunities in the Mexican market can boost Masterfoam’s growth?

A: We work with the automotive, white goods and mobility industries, among others. We have a great deal to offer the market. We attended the exhibitions in Queretaro and the Foam Expo in the US so potential customers could become acquainted with our broad range of services. Masterfoam has been in the Mexican market for three years and is a solid company that can guarantee stability, a good product and a wide range of different technologies of several materials. We are eager to grow together with our customers.

Q: How is Masterfoam capitalizing on the electrification trend? How do its solutions benefit EVs?

A: Our products are mainly for car interiors, which have not changed much replacing the drive system. Therefore, we supply besides the previous brands also to Tesla, Lucid Motors, Lightyear and Fisker. These vehicles require the same products as ICE vehicles, which we provide.

In the middle term, it will be easier for new OEMs to enter the automotive market. Electrification gives many companies the chance to enter the automotive sector, which was impossible with the complex combustion engine technology of the past. The market will see heavy competition but it will not affect us in the short term because we have positioned ourselves in the EV industry.

Q: What role does the heavy-vehicle industry play in Masterfoam’s operations?

A: This industry represents about 15 percent of our sales; the rest is light vehicles. We have a different business model for heavy trucks. The strategy is to offer smaller volumes and more personalization of each article, which is impossible to do with passenger vehicles. We adapted to this market and now run two business models.

Q: What are Masterfoam’s plans for the rest of 2022?

A: Our main priority is to increase our market share in Mexico. We work one-on-one with clients because parts are developed together with them. We also plan to invest in more machinery and in sustainability at our plant in Mexico by installing solar panels on the roof. Our goal is for the plant in Mexico to be CO2-neutral in 2025 at the latest. We are also focusing on Spain. By the end of the year, we will have integrated another manufacturing plant in Spain into the Group and we are going to introduce another product range to the EU and USMCA markets.

Tomoaki Inoue

President | JATCO Mexico

JATCO to Increase Operations at Aguascalientes Plant

Read the complete article

More about this person Q: What are the differentiators that have made JATCO one of the main players in the automotive transmission market?

A: JATCO, headquartered in Shizuoka, Japan, was established in 1999 but has numerous plants across the globe and about 12,700 employees. Our stakeholders are Nissan Motor Company, Mitsubishi Motors and Suzuki Motor Corporation. We have a strong offer of transmission control technology, with our main product being several models of the Continuously Variable Transmission (CVT). The latest model is the CVT-X transmission, offering the best technological solution in CVT market. In 2021, we had a cumulative production of 55 million units globally.

We are a passionate and motivated company with specialized knowledge that ensures we can exceed customer expectations. JATCO’s main goal is to develop new possibilities for mobility using technology and passion. We believe in facilitating the movement of people and goods. Our mission is to provide new value to mobility by providing clean, safe, comfortable and exciting products and services. We are also working on reducing CO2 emissions, water consumption and waste and are promoting corporate social responsibility activities.

Q: How has demand for CVT systems evolved among other OEMs and how has JATCO marketed its products?

A: Our main automotive customers are Nissan Mexicana and Nissan North America but we also sell to Renault, GM, Infiniti, Compass and Renault-Samsung. We have also worked with Chrysler and while our contract ended, we still produce for one of its manufacturing units. While Nissan was growing, we did not have the time to look for new customers but, now, we are looking for new clients in the Mexican, South American and the US market.

Q: How would you describe JATCO Mexico’s engagement with its workers and the community in Aguascalientes?

A: We have a strong relationship with the government of Aguascalientes and have collaborated with it on many projects. We recently invited Aguascalientes Gov. Martín Orozco to the launching ceremony of our new CVT-X, which will replace the CVT8. In collaboration with local authorities, we built a childcare center close to our plant and created the JATCO high school program, which now has 100 graduates.

We have two locations in Aguascalientes and a production capacity of almost 2 million units per year. We established JATCO in Mexico in 2003 and started production at the first site in November 2005 and at the second site in September 2014. As of April 2022, we have about 4,098 associates in Mexico. From 2003 to 2020, we produced 15 million units. In terms of recent introductions to Mexico, we now have the CVT-X (AXO) for the Rogue, X-Trail and the Kadjar vehicles and the CVT-X (CBO) for the Kicks and Sentra models.

Q: What are JATCO’s goals for the near-term?

A: The market is moving at a high speed toward electrification so JATCO is developing products for EVs. We also want to expand our mass production sites located in Aguascalientes and other cities in Mexico and the US. We are approaching OEMs to make our expansion a reality.

Alberto Bustamante

Director General | INA

EV Transition: A Historic Moment

Read the complete article

More about this person Q: What challenges could compromise Mexico’s position as the world’s fourth-largest auto parts producer?

A: The shortage of semiconductors, the rise in the cost of raw materials and the Ukraine war are affecting every country at the same level. Mexico’s fourth-place ranking is not being threatened because supply chain issues are affecting all countries equally. Germany, which is now the fifth-largest auto parts producer, will close 2022 with production valued at US$94 billion while we will close with production valued at US$102 billion. It will take Germany about eight years to reach our auto parts production levels.

Q: Mexico has been a hub of manufacturing rather than design. What is needed to transform Mexico into a design hub for vehicle components?

A: Mexico performs auto parts design and R&D but it does not take part in vehicle design because this process takes place in the OEMs’ countries of origin. Mexico has talent for vehicle design and many Mexicans are currently designing vehicles for OEMs abroad.

Q: What role can INA play in the global transition toward electromobility?

A: We are the main auto parts supplier for the US, as 36 percent of US auto parts imports come from Mexico. For over 25 years, we have supplied the US with auto parts and during the past 10 years, we have also supplied auto parts for EVs. We know the market. When Mexico produces more zero-emission vehicles, it will have to invest in adapting production lines. Our core business is the ICE auto parts market, followed by the zero-emissions segment. In the next 10 years, producing auto parts for EVs might be our main business. This shift is contemplated in the strategic plan of the auto parts industry.

Recently, President Andrés Manuel López Obrador presented a decalogue regarding the shift toward clean energies. Its third point says that by 2030, 50 percent of the manufactured vehicles in Mexico will be EVs but for this to happen, infrastructure and government support are needed. Mexico only has about 350 charging stations for EVs, while Holland has about 40,000. The country needs infrastructure and corridors for both light and heavy vehicles. Consumer collaboration is also needed. They must be conscious of their responsibility to decrease their carbon footprint but they also need access to efficient vehicles. Aside from fiscal incentives, clients need greater benefits, such as free parking and toll-free driving.

Q: What other emerging trends is the auto parts market preparing for?

A: New players are entering the auto parts industry by manufacturing hardware and software. Vehicles are changing and, in the future, the main core part of a vehicle will be its hardware. The new players are going to be more relevant because vehicle maintenance will also include software updates. Cybersecurity is also required by new vehicles that are connected to the IoT.

People do not realize the importance of the historic moment that we are living in. This era is as important as when the first ICE vehicle was launched or even when the internet was created. Future generations are going to live in a world where only EVs circulate on the road and they are going to be told stories about the times when ICE vehicles existed.

Miguel Pacheco Ancona

Country Manager Latin America North | Bridgestone

Sustainability, Mobility Are Priorities for Bridgestone

Read the complete article

More about this person Q: How is Bridgestone continuously innovating in sustainability?

A: Innovation at Bridgestone starts with technology. We are increasing our investment to provide clients with sustainable products. From 2022 to 2050, Bridgestone will continue working as a sustainable solutions provider. The company’s vision encompasses energy, ecology, efficiency, extension, economy, emotion, ease and empowerment to bring a different perspective to each part of the business. We are not just about selling tires; we want to provide sustainable mobility solutions.

Q: What is the expected demand for highperformance tires in the Mexican market?

A: Mexico has a great mix of products. Over the past few years, SUVs have grown exponentially in popularity. Bridgestone develops and manufactures a wide variety of tires from different categories, including high-performance tires. Currently, low-rim diameter tire demand is decreasing in the Mexican market, while high-rim diameter tire demand is increasing. Mexican clients are consuming better cars. At the same time, materials are changing and new technologies are arriving, helping Bridgestone to grow its high-performance tires sales, which have shown doubledigit growth.

Q: How have Bridgestone’s manufacturing operations performed over the past challenging years?

A: The Mexican workforce is great. It can innovate while adapting to several challenges. Bridgestone executed a large vaccination campaign at its facilities in Cuernavaca, helping the plant to continue operations in the safest possible environment. By 2021, we had already completely recovered our production figures. Thanks to our great planners, we carried out several strategies to secure raw materials during this global supply chain crisis. Bridgestone has constantly invested in Mexico, showing the confidence that the company has in both the country and its workforce, which has the necessary energy and knowledge to overcome challenges.

Q: How is Bridgestone investing and pushing its R&D global operations?

A: Innovation is a key part of our global strategy. Both in the OE and aftersales markets, the company works and invests heavily to develop new and sustainable products and technologies. The strategy includes R&D centers across the world to innovate in products directed to specific regions. For example, our main headquarters in Japan focuses on solutions for that region. A great deal of investment is being put into mobility solutions, which are at the core of Bridgestone’s new strategies. WebFleet was born in the EU but it is now part of our global strategy.

Q: What are Bridgestone’s main objectives and goals for the Mexican and Northern Latin America market in 2H22?

A: Our commitment to sustainability will remain a top priority during 2H22. We have grown over 10 percent in the replacement market. Still, the global and US macroeconomic scenario is difficult to predict. Inflation is worrying but remittances continue to arrive in Mexico. The company will remain cautious in 2H22 given the macroeconomic scenario.

The New Age of Lubricants for EVs

„ Salvador Orozco Sales Director | Bechem Lubrication Technology

Additive Manufacturing Opens Door to Solutions: Intelligy 3DLab

„ Sebastián Romo Managing Partner | Skala Ventures

Adding Value Through Heat Treating Services

„ Mark Hemsath Vice President of Sales, Heat Treating Services Americas | Nitrex

Robots Could Accelerate the Automotive Industry’s Transformation

„ Mauricio Rosales Carbody Sales Manager | ZEISS México

Mexico: One of the Leaders in Manufacturing Equipment Sales

„ Carlos Mortera International Director Latin America | AMT

Hyundai, Michelin to Develop Tire Technology

„ 07/01/2022

Automakers Are Increasingly Adopting Circular Economy Strategies

„ 03/17/2022

Volvo: First Truck Manufacturer to Use Fossil-Free Steel

„ 05/25/2022

Toyota Implements AI in North American Manufacturing Operations

„ 05/05/2022

Ford Introduces Motorcraft Absorbent Glass Mat Battery

„ 06/15/2022