Podcast: How Guanajuato Became a Global Automotive Powerhouse
From modest beginnings in the early 1990s when General Motors was the first OEM to establish operations in the central Mexican state of Guanajuato (in Silao), to today, when the auto industry is responsible for roughly half of the state’s industrial output, much has changed. This podcast explores the motivation and efforts behind Guanajuato’s shift from an economy based on agriculture and light industry to one where automotive manufacturing in Guanajuato leads the way.
“There are a good number of suppliers that initially came to [Guanajuato] to support GM [when they entered in 1994], but today they do business with a lot of companies [and] ship all over the world,” Manuel Fernandez, State of Guanajuato, Mexico.
Manuel Fernandez, Director of International Promotion for Guanajuato, explores in this interview with Entrada’s Doug Donahue:
- How Guanajuato encouraged foreign direct investment in automotive manufacturing, resulting in the state growing overall exports from $200 million in 1993 to $20 billion today.
- The types of auto suppliers most needed in the state of Guanajuato.
- The presence of ten auto OEMs and hundreds of suppliers in a 120-mile radius of Guanajuato and how that presence translates to new opportunities for small-tier-one and tier-two suppliers within the automotive manufacturing industry.
- The need for specific automotive suppliers who do mold making, plastic injection and produce electronic components.
- How Guanajuato’s workforce has matured, with more than 100,000 workers receiving training annually, and 5,000 engineers per year graduating from universities and technical institutes.
- The outstanding quality of life that production staff and expat management will enjoy on a relocation to Guanajuato.
- How Entrada Group’s strategic decision to situate their newest manufacturing campus in Celaya will facilitate future client growth, and the opportunities that are available to international manufacturers looking to expand their operations to Celaya.