Borderlands: Automotive logistics provider begins operations in Mexico

Automotive logistician starts operations in Mexico

RPM, a logistics service provider specializing in automotive freight transport, has started operations in Queretaro, a city northwest of Mexico City.

The goal of the expansion is to enhance services to automakers and automotive suppliers across the country while complementing RPM’s presence in the United States, Canada and Europe.

“We decided to expand in Mexico because… we already have what we call a bicontinental footprint,” RPM CEO and President Sergio Gutierrez told FreightWaves. “We’re already in Europe, we’ve served North America, particularly the US and Canada, for the past 10 years, but the last piece of the puzzle was Mexico.”

Based in Royal Oak, Michigan, RPM is an international shipping and logistics company specializing in shipping finished vehicles and auto parts.

RPM primarily caters to OEM suppliers and customers with cross-border logistics service offerings that include transshipment, border warehousing, end-to-end trailer service, first and last mile transportation, door-to-door transportation, and spot and order services.

The company currently delivers around 40,000 finished vehicles and 15,000 freight shipments per month.

Gutierrez said RPM expects the global auto industry to recover to pre-pandemic levels over the next few years and intends to “be there as the first steps of the recovery begin so that we can help our customers and ours.” expand the network of carriers”.

“That [automotive] The industry as a whole is recovering, things are getting better, there are more volumes of all types of inbound or outbound cargo, ie components or vehicles,” Gutierrez said. “Now that customers have gotten louder than ever, they keep asking us how we can help them maximize efficiency by helping them provide cross-border services to move both inbound components and outbound finished vehicle logistics. “

Mexico has one of the largest automotive industries in the world. It includes passenger car, heavy, light and medium truck manufacturers and vehicle component manufacturers with thousands of factories across the country.

According to Statista, Mexican automakers generated more than $50 billion in finished vehicle production in 2021. According to Mexico’s National Auto Parts Industry, sales of auto parts made in Mexico totaled $5 billion in 2021.

The country’s automotive industry is concentrated in several regions, one of the largest being Queretaro, where around 80,000 people work in more than 350 car factories.

RPM has appointed Raul Ambriz as Vice President of RPM Mexico, where he will oversee the organization’s growth and strategy.

“We want to introduce the so-called RPM concept, which deals with the same company across the border without the need to deal with one official in Mexico and another in the United States or another in Europe,” Gutierrez said . “It’s just about making everything so seamless through the system through technology.”

Tesla is in talks with Texas officials over a $365 million lithium refinery

According to KIII, Tesla is negotiating with South Texas officials over a refinery project aimed at creating a domestic lithium supply chain for EV batteries.

Tesla (NASDAQ: TSLA) filed a filing with the state in September to seek special tax breaks for its proposed $365 million lithium refinery, located in Robstown, Texas, about 20 miles from the Port of Corpus Christi and less than Texas in Austin is said to be 200 miles from his gigafactory.

On Wednesday, Nueces County commissioners voted unanimously to postpone negotiations between county leaders and Tesla to a closed session. The commissioners confirmed they are negotiating with Tesla over tax breaks for a property near Robstown.

Tesla said the project is the “development of a battery-grade lithium hydroxide refining facility, the first of its kind in North America.” According to a recent application to the state of Texas, the automaker plans to “process raw material into a usable state for battery production”.

Tesla is also seeking up to $16.2 million in tax breaks for the lithium refinery over 10 years from the Robstown Independent School District. No timeline was announced for the commissioners’ final decision.

El Paso explores high-tech shuttles to transport cargo

According to KFOX14, city officials in El Paso, Texas recently approved a Memorandum of Understanding (MOU) to explore the development of a cargo shuttle at the Ysleta-Zaragoza Port of Entry (POE)14.

The MOU between El Paso, Freight Shuttle Express and the Mexican city of Juarez could ease traffic at the port of entry and bring more business to the area, officials said.

The electric, fully automated cargo shuttle would connect El Paso with its neighboring city of Juarez, transporting cargo back and forth across the border.

“Essentially, we’re transporting trailers from El Paso to Juarez, from Juarez to El Paso, and bypassing the queues at the port of entry,” said David Coronado, El Paso’s executive director of international bridges and economic development.

Coronado said the city will study the feasibility of the project and there is no timeline for a decision on whether to proceed.

Automotive supplier builds 2nd plant in Mexico

Michigan-based Dayco recently announced that it will build its second plant in the Mexican city of San Luis Potosi with an investment of $11.5 million.

The factory, which will create 100 jobs, will produce belts for passenger cars. The plant is scheduled to go into operation in 2024. San Luis Potosi is about 260 miles north of Mexico City.

“This is a strategic investment that allows us to expand Dayco’s presence in North America and…the company’s global footprint,” said John Kinnick, president of Dayco’s global belt business, in a press release.

Dayco manufactures and sells powertrain systems and aftermarket services for automotive, heavy-duty truck, construction, agricultural and industrial applications. The company has more than 40 locations in 22 countries and over 3,600 employees.

Watch: Federal Motor Carrier Safety Administration targets trucking companies.

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