Bosch to Invest US$283.2 Million in Aguascalientes Plant

Bosch is set to invest US$283.2 million in the expansion of its plant in Aguascalientes in central Mexico. The investment, which was unveiled during celebrations marking the plant’s 30th anniversary, will create 400 new jobs and allow it to start producing electronic Parking Brakes (EPB) for major automakers such as Tesla, BMW and Nissan.

Aguascalientes’ Governor Teresa Jiménez highlights that this move shows the confidence of investors in the local labor force and the state’s business climate. The announcement was made alongside Bosch executives, according to Cluster Industrial. Jiménez praises the quality of the region’s workers, as their excellent performance led the company to increase the investment, which originally sat at US$82.4 million.

René Schlegel, President, Bosch Mexico, adds that the company is committed to grow in the country, as it already has 14 plants in Mexico that employ over 17,000 local workers. In 2021 alone, Bosch Mexico reached a sales volume of US$2.9 billion. 

“My respect and admiration to all associates and employees of this plant for placing high quality products in the North American automotive market so that millions of people can drive their vehicles with confidence and the highest safety,” adds Schlegel.

Orlando Ramírez, Vice President, Bosch Aguascalientes, emphasizes the role that the region has in the production of life-saving technologies. The plant employs about 1,100 people exclusively for the manufacture of state-of-the-art braking assistance systems like iBooster, ABS and ESP, adds Ramírez.

Mexico is poised to overtake Japan and become the world's third-largest auto part manufacturer, thanks to a boost in regional content requirements mandated by the USMCA and the country's ongoing nearshoring trend amid the global supply chain reorganization. According to the INA, Mexico's auto part production exceeded $106.6 billion in 2022, up 12.65% from 2021, while production in Japan, Germany and South Korea continues to decline, as reported by MBN. Francisco González, Executive President, INA, highlights the importance of this path, as it provides certainty for automakers and the auto parts industry.

“The path to the future of the automotive and auto parts industry enables the transformation that we are experiencing, opening up the opportunity to reach positions of greater leadership in mobility. That is an ambitious goal, but it is achievable,” says González.