Bulletin 393 - Friday, October 31, 2008

Mexico,- Radios manufacturer Vertex Standard announced the formal start of operations in Mexico as of next November, with an initial network of two dealers. According to Craig Chenicek, Globe Distribution Channel Vice-president, the Company invoiced close to US$200 million in 2007, before Motorola purchased a significant share of the Company. The idea of starting operations in Mexico is because there is already a market of at least US$50 million. Also, the company distributed its products in Mexico some years ago; however, due to high duties charged on imports from China, Vertex was forced to leave the market, for said duties amounted to 129%.

Source: El Financiero

Volkswagen de Mexico confirmed 100 temporary workers will leave the Company next November because their contracts will not be renewed, due to adjustments to be made in New Beetle and Jetta A4 production lines. Volkswagen's Press Department informed that this personnel cut-down is due to the fact that shifts in production lines for the above-mentioned models will be reduced from three to two; but this does not mean any changes in their production goal, estimated for this year in 450 thousand units. "It is important to clear out that production goals for this year are not modified; it is only a matter of optimizing production processes", the Company's management informed. It is to be mentioned that a month ago the Union Leader informed Milenio Puebla about the dismissal of 140 temporary workers due to similar conditions. Some days later, a group of workers issued a press release stating their concern for said situation, even if they also acknowledged that production at Puebla plant continued at its normal pace.

Source: Vanguardia

Mexico,- In spite of the upheavals in international markets, American Standard. manufacturer of bathroom furniture, will invest US$20 million to expand their operations in Mexico, after they had sales here for US$35 million in 2007, a12% share of the market and a production that reached 50% of all manufactures in Latin America. This strategy is due to the fact that Mexico offers ideal conditions for American Standard on "geographical location, manufacturing quality and the fact that 80% of production is exported to the United States and Canada, which make of this market the most profitable in the Region; this is why American Standard left the Brazilian market and closed a plant in the United States", said in an interview Mauricio Uribe Morales, Human Resources Director. This expansion will generate between 600 and 800 direct jobs, which will add to the five thousand 500 direct jobs and 25 thousand indirect jobs the Company generates through its five plants located in Aguascalientes, Monterrey, Tlaxcala and the State of Mexico, where the Company has already invested MEP$3 million in refurbishing its infrastructure.

Source: El Financiero

Mexico,- The 24,600 employees global cut down announced by HP will not affect operations in .Guadalajara, according to its Director, Julio Acevedo, who assured that unlike what is happening elsewhere in the world, the merge with EDS could generate more jobs in Jalisco. "By adding HP employees to EDS employees there will be synergies, there will be duplicities and the 24 thousand [jobs to be cut down] are within said synergies; many of those jobs will consolidate with those we have here in Guadalajara to provide EDS the same services [as those provided to HP] such as payroll and travel expenses management and that type of activities, which outcome will be more jobs for Guadalajara". "We think next year we will grow to between 300 and 500 people". In Guadalajara we currently process payroll for around 3,800 of the Company's employees. Toluquilla Center is being expanded to accommodate some 400 people more, because right now the space is insufficient.

Source: El Financiero

Cd Juarez,- Lear has terminated its labor relationship with 650 workers, who received their. severance payment last Thursday and Friday. Employees affected by this personnel cut down, asking not be identified, said that the Company informed them about its intention to close the plant located in Ejercito Nacional Avenue in Ciudad Juarez, and relocate the few employees still working there in some other branch. This maquiladora company has been resorting for several months now to technical stoppages in the 7 plants the Corporation has in Ciudad Juarez. The first 300 severance payments were made last Thursday and the remaining 350 were paid on Friday. People laid off include both blue and white collar workers. Current critical situation in maquila industry is worsening even more due to problems of automobiles assemblers established in the United States and other countries, which has an unavoidable influence on suppliers established in Ciudad Juarez.

Source: El Diario

Quality and experience of local labor force was an essential factor for Daimler to install.a Freightliner trucks plant in Saltillo. They will also develop here a strong suppliers chain. This was informed by D'Arcy North, Logistics and Materials Manager for Daimler Trucks, interviewed during the forum organized by Coahuila-Southeast Chapter of the Mexican Chamber of Processing Industry, Canacintra, on small and medium companies and productive chains, "Noveno Foro Pyme y Encuentro de Cadenas Productivas", which was inaugurated yesterday. "We think this is the ideal forum to find them; we think we will develop between 40 and 50 suppliers", Mr. North assured when speaking about the products being exhibited by more than 100 micro, small and medium companies participating in the Forum, which purpose is becoming suppliers for the big assemblers. Luis Lopez, Planning and Procurement Manager for Daimler, also spoke about logistics in Coahuila's southeast region and said that "considering development and growth and new infrastructure in the zone, as well as the construction of the new highway, I do not see any problem and we will go over details in the future. Our plans are doubling production within three years".

Source: Milenio