Audi has selected around 180 suppliers for the premium SUV. Around two-thirds of these suppliers are based in the NAFTA region, and more than 100 of them supply Audi from a location in Mexico. Around 60 suppliers have also invested in greenfield and brownfield plants in Mexico. Audi will achieve a local content of more than 70 percent at the start of production.
Audi México is counting on smart logistics. In addition to other innovations, the plant was equipped with RFID (Radio Frequency Identification) technology, which enables flexible coordination of production and supplier chains right up to the FBU (Fully Built Up) outbound product. Audi México is the first plant in the entire Volkswagen Group to implement this technology for all material and container flows.
Logistics at Audi México also has a CKD packaging operation, which supplies production materials to overseas assembly sites. It is the first in the history of Audi to be installed outside of Europe.
In its initial expansion stage, the JIS (Just in Sequence) park comprises an area of 26 hectares (total available area: 60 hectares), and it is located in the immediate vicinity of the plant site. This is where Audi México works together with seven partners: five suppliers and two logistics service providers. In total, around 1,000 people are employed in the JIS park. They ensure that the necessary parts are delivered to the plant in precise sequence. The park’s proximity reduces logistics costs and helps protect the environment.