Japan has now consolidated as one of the main leaders in the automotive sector, giving birth to concepts such as just-in-time and just-in-sequence operations that are now a standard for all industry participants. Its growing presence has translated to an emerging industry in Mexico, mainly in the Bajio region where most Japanese OEMs have established their home.

This chapter analyzes the importance of Japanese investment in Mexico and the way these companies are transforming the manufacturing landscape in Mexico. New projects are featured, together with companies’ objectives to grow in the domestic and the international markets. Strategies to grow local supplier networks are also discussed, considering the high-quality standards Japanese companies have in place.

Main question to answer

What can local companies do to participate in Japanese manufacturing chains?