ZF Group Invests US$245 Million to Expand Mexican Operations
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ZF Group Invests US$245 Million to Expand Mexican Operations

Photo by:   ZF Group
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Rodrigo Andrade By Rodrigo Andrade | Journalist & Industry Analyst - Thu, 02/23/2023 - 09:01

German automotive company ZF Group will increase its manufacturing operations in Queretaro with an expansion of over 80,000m2. In addition, the company will establish a new distribution center in the region this year to meet the growing demand for its chassis technologies, including its Integrated Brake Control Systems and Electric Power Assisted Steering Systems, reads the company’s press release.

“We have called Queretaro one of our homes in Mexico for a long time now, and we look forward to further strengthening our relationship in the community as we continue our transformation as one of the leading mobility technology companies in the industry,” says Martin Fischer, President of North America and Board Member, ZF Group.

The expansion is set to create over 1,300 new jobs in the next five years, and the company plans to start hiring immediately. The total investment for the expansion will surpass US$245 million. The distribution center will receive and export products to customers all across North America.

ZF Group's facilities in Mexico are the second largest in employees after those in Germany, highlights Fischer. “As we continue our work to bring Next Generation Mobility to the world, Mexico continues to be a critical part of our success – and that is well represented in both our excellence in manufacturing, as well as our engineering resources located throughout the country," says Fischer.

ZF Group started operations in Queretaro in 1984 and currently has brake systems facilities at the Santa Rosa and El Marques plants, as well as a steering system factory in El Marques. All three facilities are undergoing an expansion. The company has nine production areas and works with 3,450 employees that are focused on producing braking and steering systems for light-duty units, including those with electric powertrains and autonomous driving systems, as well as steering systems for commercial vehicles.

The company aims to be a leading supplier of commercial transportation, working in fields such as vehicle motion control, integrated safety, automated driving and electromobility, says Elena Donahue, Head of Commercial Vehicle Aftermarket and Fleet Business North America, ZF Group, to MBN.

Donahue highlights that the most important challenges Mexico faces to implement commercial transportation technologies revolve around infrastructure, and are also common to other Latin American countries. “The future of mobility involves improving and adopting telecommunication infrastructure as an important building block for digitalization and data intelligence, and infrastructure in Mexico has always been a challenge. To provide quality services and take commercial transportation to the next level, the country must have this connectivity,” says Donahue.

Photo by:   ZF Group

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