Introduction to Nexteer Automotive and its Expansion in Querétaro
Querétaro, Qro. Nexteer Automotive, a leading global provider of steering and driveline systems, is set to inaugurate its new Technical Center in Querétaro, Mexico, according to Juan Farías, the Vice President and Director of Operations for Nexteer in México. The center is expected to open in October.
Existing Operations in Querétaro
The new Technical Center will complement Nexteer’s existing four plants in Querétaro, further strengthening its position as a key player in the region. These plants currently produce steering systems, electric and hydraulic power steering systems, electronic steering systems, and software solutions. Approximately 90% of Nexteer’s production is exported to the United States.
Current Status and Future Plans
The partial operation of the new Technical Center is already underway at one of the existing plants, employing nearly 160 experts. Once the new center is ready, these professionals will transition to the dedicated facility, which will have a capacity for 380 individuals. The center will primarily consist of engineers specializing in mechatronics, electronics engineering, and systems programming.
Market Conditions and Local Sourcing
Despite the ongoing trade tensions between Mexico and the United States, Nexteer has not experienced a decrease in demand. However, market intelligence suggests a potential decline towards the end of the year.
To adapt to these changing conditions, Nexteer is naturally increasing regional content integration to meet North American trade agreement standards. As tariffs on steel, aluminum, and copolymer products rise in the U.S., clients are increasingly seeking local suppliers.
Nexteer sources domestic production for metals, plastics, elastomers, chip tablets, and other components. The company anticipates soon having requirements for quoting or re-quoting local suppliers.
Advice for Local Suppliers
Farías advises local suppliers to act swiftly, as the current global context presents a window of opportunity for integration into Nexteer’s supply chain.
Key Questions and Answers
- What is Nexteer Automotive? Nexteer Automotive is a global leader in steering and driveline systems, offering products such as electric and hydraulic power steering systems, electronic steering systems, and software solutions.
- When will the new Technical Center open? The center is expected to open in October.
- How many people will work at the new Technical Center? The center will have a capacity for 380 individuals, primarily engineers specializing in mechatronics, electronics engineering, and systems programming.
- What is the current demand status? Despite trade tensions, Nexteer has not experienced a decrease in demand. However, market intelligence suggests a potential decline towards the end of the year.
- How is Nexteer adapting to changing market conditions? Nexteer is naturally increasing regional content integration and sourcing domestic production for metals, plastics, elastomers, chip tablets, and other components to meet North American trade agreement standards.
