Bosch to Create Thousands of New Jobs in Mexico
August 1, 2014
Bosch, the world’s largest car-parts manufacturer and supplier, will begin to lift its eyes beyond Germany and into automotive manufacturing in Mexico, as stated by Chief Executive Officer (CEO) Volkmar Denner on an interview for a German newspaper. According to Denner, Bosch is ready to satisfy the increasing demand for automobiles in the North American region by investing over 400 million euros ($546 million USD or $7.14 billion MXN) through 2017, with the goal of creating over 3,000 new jobs during those three years.
In addition, the car-parts manufacturing giant will create a research and development center as part of its new expansion model, after another one in the Mexican city of Guadalajara hired over 200 engineers whose focus will be on software programming and application services. For this plant, Guadalajara was chosen because of infrastructure and available workforce. As such, Bosch’s increasing interest for automobile manufacturing in Mexico highlights how demand in both the North American Free Trade Agreement (NAFTA) member and the United States —itself the world’s second-largest automobile market— aids in maximizing its imports and exports at a cost-effective price.
Bosch has constantly affirmed itself into helping the Mexican workforce and environment in ingenious ways. According to an established report on North American operations in May 2011, the Toluca manufacturing center has encourage its 2,300 associates with reforestation efforts, planting more than 46,000 trees in 100 acres (40.47 hectares) of land. The report also establishes how the students of Bosch Training Center in San Miguel Balderas led the initiative’s first part, planting over 4,000 trees with another 6,000 planted for the second phase.
In regards to the growth of Bosch over North America as both a direct and indirect beneficiary of the automobile industry’s resurgence in North America, the company’s total income increase 15% to around $1 billion USD (7.46 billion euro or 13.1 billion MXN). In this case, automotive manufacturing in Mexico has proven to be a boom for other companies like German luxury car manufacturers BMW and Mercedes-Benz and Japanese Nissan seek to enjoy its benefits by producing manufacturing plants in the country.