The city is highly dependent on the Volkswagen and Audi plants, so it is necessary to expand the client portfolio, a situation that other T1s have, which supply other automakers in Mexico and that means more production, income and jobs.

Around 10 Mexican Tier 2 (T2) auto parts companies are in the process of being certified in 2025 and moving up to Tier 1 (T1), with the aim of being direct suppliers of Volkswagen and Audi in Puebla, as well as other automotive plants installed in the country, since they have infrastructure and have been modernizing their equipment.

Mirko Kosic, president of the auto parts sector of the local National Chamber of the Transformation Industry (Canacintra), explained that this process began last March after a diagnosis that lasted two months to detect T2s with growth potential.

He said that after two difficult years for the automotive industry due to unscheduled production stoppages caused by a shortage of inputs, they resumed at the end of 2023 the goal of having more local direct suppliers in the automotive industry.

He pointed out that it is in the interest of the Puebla sector to have more T1s, "because it demonstrates the productive capacity and in turn benefits second-tier companies that are in the supply chain."

He added that auto parts manufacturers are working on the certification process required by vehicle manufacturers, which is TS 16949 based on ISO 9001, which refers to product quality, productivity, competitiveness and continuous improvement.

“If they get it, it will mean that auto parts manufacturers will have to reinvest in their plants to increase their production capacity and hire up to 30% more staff. They have already done the first and expanding the payroll depends on each one, because there are companies that have been automating certain processes, where labor is required,” he said.

Reduce high dependency

He indicated that there is a high dependence on the Volkswagen and Audi plants in Puebla, which is why it is necessary to expand the client portfolio, a situation that other T1s have, which supply other automakers in Mexico and that means more production, income and jobs.

Mirko Kosic mentioned that T2 suppliers are not responsible for the design of auto parts, but only for supporting TIER 1 suppliers in production, the latter assuming the risks and costs in the event of a claim from the automotive factory.

He made it clear that perhaps not all of them will complete the certification, because there is something pending that they must compensate, but at least they are taking steps to try again and achieve it in the short or medium term, but it is a decision of the directors of those auto parts companies.

He also recalled that, in order to achieve the aforementioned standard, companies must have the financial capacity, demonstrate that their workers are trained, guarantee the on-time delivery of supplies and that they have met first-class manufacturing standards.

Canacintra is affiliated with 120 supplier companies, of which 45 are T1 and the rest are T2, between which they generate more than 65,000 jobs.