Stellantis Mexico Increases Local Procurement to Meet US Rules

Stellantis Mexico is increasing local procurement to meet North American supply chain requirements and adapt to new US tariffs, the company’s purchasing director said Oct. 2. Evelin Nava Castaldi, director of Purchasing, outlined the company’s strategy to strengthen Tier 1, Tier 2, and Tier 3 supplier networks and boost regional content during her presentation on the first day of CIIAM 2025.

“We went from 25% of North American purchases coming from Mexico to nearly 50% today,” she said. “We aim to expand existing suppliers, attract those not currently in Mexico, and identify smaller local suppliers that could become major automotive partners in the future.”

Nava noted that the introduction of new US tariffs required Stellantis to reassess its nearshoring strategy. “We had to slow down to understand the impact of the tariffs. There is more certainty now, but it is not total. What is certain is that the trade agreement continues, and suppliers who do not comply must strengthen their local content,” she said.

Looking ahead, Nava emphasized the need to deepen Mexico’s supplier ecosystem, especially at Tier 2 and Tier 3 levels, to fully meet T-MEC requirements and avoid tariffs. “We want to act as a catalyst between our Tier 1 suppliers and smaller Tier 2 and Tier 3 suppliers. We need to work closely with Tier 1 to bring in these smaller suppliers and eventually strengthen regional content,” she said.

She also highlighted the importance of vertical integration, noting that while basic components like stamped parts and plastics are available in Mexico, technology-intensive components remain a challenge. “The car today is like a walking smartphone,” Nava said. “This technology requires more effort, larger investments, and know-how that we may not fully have yet.”