Speech at the
Inauguration of the JIS Supplier Park
Dr. Bernd Martens
Member of the Board of Management of AUDI AG, Procurement
San José Chiapa, October 1, 2016
-Check against delivery-
Governor of Puebla,
Partners and Suppliers,
Ladies and Gentlemen,
Welcome to the opening of our JIS Supplier Park!
We are here to the south and directly adjacent to our new production facility. Audi México went into operation yesterday as the 16th plant of the Audi Group. We are now starting here with production of the new Audi Q5!
It is important for a car plant that components arrive on the assembly line just-in-sequence in the right order of the customers’ cars being produced. That’s why we – together with the O’Donnell company –
laid the foundation stone for this supplier park in 2014. O’Donnell has invested in this supplier park and will manage it. And for that, I would like to thank you wholeheartedly, Mr. O’Donnell!
Proximity to our partners is important to us: This allows both sides to save time, ensures efficient logistics
and takes pressure off the infrastructure. In good time before the start of production of the Q5
seven suppliers and logistics providers have set up facilities here: Faurecia ET, HBPO, Thyssen Krupp Automotive, Truck and Wheel, TI Automotive, Kuehne+Nagel, and Syncreon.
The JIS park is one element of our localization strategy. In procurement at Audi, we work worldwide according to the principle of globalization through localization! Of our approximately 180 suppliers for the Audi Q5, more than 100 supply us from a site in Mexico. About 60 suppliers have actually followed us around the globe and have also invested in Mexico – in so-called brown- and green-field projects. They include our partners here in the JIS park.
We set ourselves a very ambitious localization target of 65 percent for Mexico – and we have not only achieved it, we have surpassed it! At start of production, we already have a local content of more than 70 percent!
By purchasing our components locally, we reduce our costs for parts and logistics. We also protect ourselves against currency fluctuations and increase our supply security.
And the most important thing: We fulfill the requirements of all free-trade agreements and can export the Audi Q5 from Mexico duty free to all major markets.
So we at Audi profit from this localization, just like Mexico also profits. Over the entire product lifetime of the Audi Q5, we will purchase parts and components from North American suppliers, and that means mainly from Mexican suppliers, in a total volume of approximately 13 billion euros.
Another benefit is that through localization, together with our suppliers, we are creating an enormous employment effect. Here alone, in the JIS park, about 1,000 jobs will be created. And Audi México will directly employ 4,200 people. Here at Audi, with our partners and in our economic environment, at a rough estimate, up to 20,000 jobs will be created in the coming years.
Last but not least, I would like to emphasize one thing: The entire project was a great challenge. We are producing: a new model, in a new plant, with new employees, and new suppliers! Without the positive collaboration with you, our partners, we wouldn’t have been able to manage the project in this form. Without the high quality of each individual component, the new Audi Q5 wouldn’t have become such an attractive and appealing premium model!
The Audi Q5 has been the premium market leader in its segment since 2009. I am sure: the new Q5 will continue this success story. And you, our partners, have made an important contribution! And thank you also to you, Mr. Governor, for your support.
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