Mexico a Potential Mobility Engineering Solutions Hub
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Mexico a Potential Mobility Engineering Solutions Hub

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Renaud Deneubourg - EDAG
CEO Mexico

STORY INLINE POST

Q: How does EDAG provide integral mobility solutions for Mexico’s automotive industry?

A: We are experts on providing mobility engineering solutions through our three innovation-driven channels: vehicle development, production plants and connectivity. As service providers, we cover all the manufacturing processes required by the automotive industry, from vehicle design to production plant development and system and vehicle connectivity.

Q: What is the importance of EDAG Mexico in the company's global agenda?
A: EDAG is a global partner, which allows us to be close to our clients. The company’s facilities in Mexico allow us to establish ourselves in the local market and sustain our leadership position thanks to the advantages that come with being global experts with a local presence.

We are also an important part of the ecosystem in terms of knowledge. EDAG has knowledge centers distributed around the world. Having one of these installations in Mexico allows us to be the backbone for our operations in North America, as being close to our customers lets us stay in front of market demands. When a company has a technical challenge, it will turn to EDAG because, in most cases, we have solved a similar problem for one of our clients across the world.

Q: How have the company's services evolved to adapt to growing industry trends like electrification, digitalization and process technification?
A: We are seeing a large opportunity in electrification and are working with different technologies that will revolutionize the EV market, such as BEV and FCEV vehicle architectures, energy storage systems, energy consumption management, braking systems, charging platforms, battery safety development, and others.

All of our efforts focus on the connectivity and the electrification of future vehicles because we understand that this is the future of the industry and a large area of opportunity that we need to start attacking right now in Mexico.

Q: Experts say Mexico must shift from a manufacturing to a developer approach. What are the opportunities for the country’s manufacturing sector to meet this challenge? 

A: During the past few years, we have seen a clear trend in moving R&D operations from all over the world to Mexico, a trend that will likely increase. However, it is important to understand that much of this investment comes alongside manufacturing demand. Automakers, OEMs and tiered companies are already developing R&D in Mexico but the country needs to keep improving its facilities and regulations, as well as investing more in developing highly-specialized talent.

Mexico is already well established in the automotive industry. For example, 95 percent of EDAG’s employees are Mexicans who have grown alongside the organization and who continue to develop their professional careers here. 

Q: What role does Mexican talent play in EDAG Mexico as the country is a strategic hub in the region?
A: Our Mexican colleagues want to be connected with the world and we are happy to offer that opportunity to all of our employees. As an interconnected company, we have colleagues basically everywhere in the world. We give them the opportunity to learn from the different subsidiaries and apply that knowledge here. 


Q: How does the EDAG TestLab in Puebla boost the region’s competitiveness?
A: EDAG strongly supports and promotes collaboration between the industry, academia and the public sector. We are working to understand how to train and develop Mexico’s workforce. We have allied with a number of universities to launch new developments that involve the different fields taught by technical universities in Mexico. 

We put students in contact with real-life problems so they have the chance to experience these situations. We can identify new talent through this process. We also gain a realistic view of how they would perform on a day-to-day basis within the company. We believe that this is a key for the organization’s future success in Mexico.

Q: The USMCA panel on rules of origin ruled in favor of Mexico and Canada. How will this impact Mexico’s automotive industry?
A: It is hard to accurately predict the impact of this ruling but we are certain that nearshoring activities will increase thanks to demand growth among system suppliers, manufacturers and the industry at the local level. 

This is a clear trend in the automotive industry in which different players across markets and sectors are increasingly moving to Mexico because of the potential benefits of nearshoring.

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