DANA Cardanes Expands Queretaro Plant

US automotive company DANA Cardanes invested MX$400 million (US$21 million) to expand its operations in Queretaro, adding a production line that will manufacture cardan shafts for Toyota. The plant’s expansion will create 100 jobs but the company expects to add 200 more positions once the three assembly lines are fully operating.

DANA Cardanes employs over 38,000 people around the world, and has over 10 manufacturing plants in Mexico. The new 917-square-meter factory will focus on producing for Toyota, says Alejandro Sánchez, Chief Operating Officer, DANA Cardanes.

Queretaro plays an essential role in Mexico’s automotive industry thanks to its privileged location, logistical infrastructure and public policies, added Sánchez. These key strengths distinguish the region and provide certainty to companies that desire to invest in the country. "These characteristics influenced the company’s decision to strengthen its supply capacity for the automotive industry," says Sánchez, according to El Economista.

In 2022, the company celebrated its 50th anniversary in Queretaro. Vicente Castillo, Country Lead, DANA Cardanes, praised the relationship established between the company and the Government of Queretaro. “In the last five years, Cardanes has delivered world-class commitments, if we talk about manufacturing, safety, if we talk about quality, profitability, really everything plays,” says Castillo, according to Mexico Industry.

Queretaro: Critical Industrial Hub for Mexico

Last year, the region received 46 new investment projects that have brought the state over 13,000 new jobs and generated over US$1.1 billion. Queretaro saw a 48.8 percent increase in the total number of projects when compared to the 31 investments deals in 2021, according to Marco Antonio Del Prete Tercero, Minister of Sustainable Development of Queretaro. Many more projects are expected for 2023, including some from companies form China and the EU, as reported by MBN.

State Governor Mauricio Kuri González emphasized the administration’s strategies to strengthen the automotive industry. "Betting that companies, which are the ones that provide jobs, we only provide the conditions, continue to have this confidence in Querétaro," says Kuri.

The state’s privileged position has been key to attracting investment projects, of which many are for the automotive industry. “Many countries seek to take advantage of nearshoring, or of having nearby (supply) chains; obviously companies from the EU because of our proximity to the US,” says Del Petre.