The Queretaro facility supplies several Japanese engine customers as well as major automakers, for which Freudenberg-NOK provides front-wheel drive transmission parts. Although production of the new business line only began in 2014, the company says sales are expected to grow rapidly, along with overall Mexican auto production. By the end of 2015, industry sources estimate that Mexico will surpass Japan and Canada to become the top source of imported cars by the U.S.
“We’ve seen increased requests for production in Mexico, and our company is expanding production to meet those requests,” said Gary VanWambeke, general manager, Global Transmission and Driveline Lead Center, Freudenberg-NOK. “Just six months after beginning the process to install the necessary machinery to produce oil seals, we had 58 pieces of equipment running and 2.4 million parts delivered.”
In addition to having favorable business results with top automakers, the plant itself has achieved several milestones, according to the company. During the past year that the facility has operated, it has been free from accidents and customer complaints, all while achieving a perfect on-time-delivery score.
A large part of the success can be attributed to the facility’s associates who adapted well to change, said Luis Pardo, the plant’s manager. “Our team is passionate and proud of the work we do, which is reflected in a stable, exemplary performance and a very quick turnaround from the time of an order to its delivery. The morale and camaraderie is incredible, and we’ve introduced several new concepts to keep that spirit, as well as a motto of ‘one company, one team’.”
Freudenberg-NOK’s successful decision to relocate a portion of its automotive sealing to Mexico can be credited, in part, to its global business philosophy – establish a manufacturing presence in a country and integrate into the business community.
“Our company does not establish regional operations on the basis of low-cost labor opportunities,” added Torsten Maschke, president, automotive sales and marketing, Freudenberg Sealing Technologies. “We pursue investments where our company can become a local supplier focused on local customer needs. We strive to become part of a country’s manufacturing fabric.”
By integrating into the Mexican industry, Freudenberg-NOK’s Queretaro location has become one of the company’s fastest-growing facilities. Numbers are expected to continue growing as Mexico increases its exporting trend and as automakers continue moving production to the country.
