Chihuahua Automotive Cluster Boosts Tech, Talent

Q: What is the main role of the Chihuahua Automotive Cluster and what is the typical profile of its member companies?
A: The Chihuahua Automotive Cluster focuses on automotive parts manufacturing. We have two OEMs: Ford, which operates one of the world’s largest engine plants with hybrid, diesel, and gasoline vehicle production; and BRP, which produces recreational vehicles such as side-by-sides and ATVs. Our mission is to integrate the supply chain from OEMs down to Tier 3 suppliers, and even help Tier 4 companies scale up. We are formalizing this effort through the Supplier Acceleration Ramp (RAP) program, designed to professionalize and strengthen local suppliers for the automotive sector.

Q: What are the main challenges local companies face, and how is the cluster addressing them?
A: We are tackling three key challenges: supply chain development, skilled labor shortages, and global trade barriers. On supply chain, our RAP program aims to convert technically capable local firms into Tier 3 or Tier 2 suppliers. To close the talent gap, we collaborate with institutions such as TecMilenio, INADET, and CENALTEC— the country’s largest industrial training center — to provide specialized training in electrification and Industry 4.0. In global trade, we maintain close coordination with the Ministry of Economy, INA, and AIAG to address tariff-related issues and align companies with international standards.

Q: How are trade tariffs affecting the local industry, and what is your outlook for the near future?
A: Tariff uncertainty has been a key challenge, delaying plant expansions and new investment projects. Many firms paused development due to the lack of clarity in trade policy. Although the first half of the year showed slower sales, suppliers report recovery in the second half as they try to make up lost ground. The industry remains about 5% below expected levels, but we anticipate stable performance in 2026–2027, with moderate recovery as global and domestic demand stabilizes.

There are varying projections. Some expect a significant rebound by mid-2026, while others forecast flat growth until 2027. We will likely see moderate recovery next year as delayed projects and investments resume. Many companies that paused expansion during the trade uncertainty are now re-engaging, and we expect concrete investment activity within the next six to nine months. These efforts should translate into visible results by 2027, particularly in new manufacturing projects.

Q: What are your expectations for the recent tariff negotiations?
A: The private sector would prefer faster and more direct negotiations, but we understand the complexity of dealing with major global partners. What is critical now is ensuring that information from these negotiations flows efficiently to companies. Internally, Mexico must also address administrative bottlenecks, such as IMMEX permits and tax reimbursements, which discourage investment and affect competitiveness.

Q: What advantages does Mexico still offer to attract nearshoring investment?
A: Mexico retains strong advantages: proximity to the United States, a skilled workforce, and decades of experience in automotive manufacturing. Despite tariff challenges, we remain one of the world’s most competitive production locations. The key is preparation; many companies missed the first nearshoring wave due to lack of readiness. We now have another opportunity to strengthen infrastructure, industrial facilities, and supplier networks to capture the next cycle of investment.

Q: How is the cluster preparing for the shift toward vehicle electrification and clean energy?
A: Electrification is inevitable, but there will not be a single path. We anticipate a diversified mix of technologies — electric, hydrogen, gas, and sustainable fuels — based on industrial and regional needs. To guide this transition, we commissioned a strategic study with the University of Michigan to design an electrification roadmap for Chihuahua, covering both manufacturing and societal adaptation. However, sustainability challenges remain: EVs still rely heavily on carbon-based energy for charging. Until power generation and infrastructure evolve, the environmental advantage of EVs will be limited.

Q: What role should government and industry play in enabling a cleaner energy transition?
A: The transition requires coordinated infrastructure investment. Even in regions with advanced EV adoption, such as California or Northern Europe, electrical grids are under strain. In Mexico, where industrial power distribution is already limited, rapid electrification could create bottlenecks. A multi-technology approach — combining electric, hydrogen, and sustainable fuel systems — is more realistic in the medium term. Public policy must focus on expanding generation capacity while private industry drives innovation in mobility solutions.

Q: What initiatives is the cluster implementing to address the talent and skills gap in the automotive sector?
A: We are developing specialized talent through a Dual Education and Skills Development Committee. In partnership with TecMilenio, we launched a modular automotive program offering microcredentials and certifications that stack into full degrees. We also collaborate with leading institutions such as Tecnológico de Monterrey, the Universidad Politécnica de Chihuahua, and CENALTE to expand technical certifications in quality and manufacturing. Our focus is to retain talent by attracting high-value, technology-driven companies that raise local wage levels.

Q: How is the cluster incorporating technology and AI into workforce development?
A: We are training companies to integrate AI into their operations, automating repetitive tasks and improving workforce efficiency. At the same time, we are investing in English-language training and digital skills to enhance employability. By combining human capability with AI tools, we aim to make manufacturing roles more productive and strategically focused. This aligns with our goal of building a competitive, future-ready workforce in Chihuahua.

Q: What are the cluster’s main strategic priorities for the next few years?
A: Our strategic priority is to establish a five-year governance and development plan through 2031. This includes integrating and strengthening the supply chain via the RAP program, advancing innovation in mobility, electrification, and Industry 4.0, and professionalizing our governance model. We are also focused on expanding our presence across Chihuahua, especially in Ciudad Juarez and the central-southern regions, and deepening collaboration through the quadruple helix framework.

We measure success through multiple indicators: investment attraction, technological adoption, business generation, and member retention. For example, we track the conversion of leads generated at expos into business opportunities. We also evaluate the number of pilot R&D projects and new memberships. Since my arrival, we have grown from 20 to over 50 members, maintaining a 98% retention rate, which reflects both engagement and value creation within the cluster.

Q: Which trends will have the greatest impact on Chihuahua and the cluster’s strategy?
A: Key trends include nearshoring, hybrid vehicle adoption, and the integration of AI and automation. While full electrification will progress more slowly than predicted, hybrid technologies will dominate the transition. AI and Industry 4.0 will be essential to boosting productivity and addressing labor shortages as workforce expectations evolve. These technologies will not eliminate jobs, but will elevate roles toward more strategic and specialized functions, ensuring competitiveness and sustainable growth.