AUTOPARTS MANUFACTURING AUTOMOTIVE SECTOR CAPABILITIES IN QUERÉTARO

2014

QUERÉTARO AUTOMOTIVE CLUSTER PRESIDENT’S MESSAGE

uerétaro has a tradition in the automotive industry that dates back to the beginning of the 60s. After more than 50 years of experience the State has lived colossal Qchanges that have promoted the industrial development which has not only impacted the automotive sector but also other sectors. Labor force specialization, the development of a strong supply chain, the industrial infrastructure growth, these are some examples of the Automotive legacy to Querétaro society.

With the foundation of the Automotive Cluster in June 2013, the key players of this sector have found the right channel to boost their efforts. This integration has made stronger the already successful relationship between private sector and the State Government and has aligned the hard work the universities and R&D centers had built during the years.

Thanks to this association it is possible to accomplish new projects like this mapping that will enhance the consolidation of the Automotive Sector, this document presents the evolution that this Sector has had, we can recognize the technological development from metalworking processes with intensive labor force to the development of electronic vehicle systems, manufacturing of safety components and the consolidation of engineering centers within the companies. This document reveals the exponential growth we have experienced over the past 5 years which has ANTONIO HERRERA encouraged the arrival of new investments to the entity. President of the Automotive Cluster of We trust that this project will offer information that will guide you Querétaro and TREMEC Director through you decision making based on the productive capabilities of autopart manufacturers that have been identified and will alllow you to take advantage of the conditions that Querétaro and México are currently experiencing regarding the automotive sector. The Automotive Cluster of Querétaro, A.C. is an organization specialized in the development and consolidation of the automotive sector in the entity; its actions and activities have both regional and national impact.This cluster was created in 2013, with the participation of major state companies, universities, research centers and the State Government.

Since its creation and up-to-date, the Cluster promotes the increasing competitiveness of the sector in the region through projects and actions that have impact the development of human resources, the integration of local companies in the supply chain and the generation of strategic information to facilitate business decision making.

INDUSTRIAL MEMBERS

|CV Componentes| |Cardanes| |Forjas|

KMEX |El Marqués| |Querétaro|

|P. Escobedo| |Peñuelas| |Enco|

ACADEMY GOVERNMENT R + D MEMBERS MEMBERS MEMBERS CLUSTER’S MAIN STRATEGIES

SUPPLIERS DEVELOPMENT HUMAN RESOURCES DEVELOPMENT

OPERATIONAL EXCELLENCE PROMOTION OF BUSINESS OPPORTUNITIES

Queretaro Automotive Cluster acknowledges and appreciates the National Institute of Entrepreneur and the Secretariat of Sustainable Development of Querétaro the support for the development of this document. CONTENT INDEX

AUTOMOTIVE HEAVY VEHICLES 04 SECTOR IN MEXICO 10 PRODUCTION SITES

FOREIGN DIRECT PRODUCED HEAVY 05 INVESTMENT 11 VEHICLES 2014 2008-2013

START UP OF OEMS AUTOPARTS 06 12 MAKERS DISTRIBUTION

LIGHT VEHICLE AUTOMOTIVE 07 PRODUCTION SITES 14 SECTOR IN QUERÉTARO

ENGINEERING ORIGIN OF INVESTMENT 08 CENTER 15 AUTO PARTS MAKERS

PRODUCED LIGHT GERMANY 09 VEHICLES 2014 16 PLANTS SUSPENSION CONTENT 26 SYSTEM INDEX 27 AIR SYSTEM USA 17 PLANTS 28 ELECTRICAL SYSTEM JAPAN 18 PLANTS 29 FUEL SYSTEM 19 OTHER PLANTS SAFETY & 30 COMFORT

START UP OF 21 LOCAL TIER 1 31 SAFETY & COMFORT (INTERIOR) 23 BODY- EXTERIOR 32 STRUCTURE 24 BRAKE SYSTEM 33 TRANSMISSION 25 STEERING SYSTEM 34 ENGINE QUERÉTARO AUTOMOTIVE CLUSTER AUTOMOTIVE SECTOR IN MEXICO

Generates 3.5% of National GDP and 19.8% of Manufacturing GDP.

Impacts 23 industrial sectors in the country.

Ranked 8th place in produced units and 6th place in exported units worldwide.

3 million units produced in 2013 and an estimated 3.4 million units for 2014.

18 assembly plants and more than 300 Tier 1 suppliers.

Light vehicles Heavy vehicles Engines

General Motors USA Daimler Germany Cummins USA, Can Ford USA Scania Sweden Detroit Diesel Chrysler/Fiat USA, Italy Volvo Sweden Volkswagen Germany Nissan Japan Dina Mexico Mazda Japan Kenworth USA Honda Japan International USA Toyota Japan Volkswagen Germany Volkswagen Germany Man Germany Audi Germany Hino Motors Toyota Japan BMW Germany Isuzu Japan KIA Korea Giant China

4 Source: AMIA, June 2014 & SEDESU QUERÉTARO AUTOMOTIVE CLUSTER

FOREIGN DIRECT INVESTMENT 2008-2013

Rank Company 2008-2009 2010 2011 2012 2013 Total 1 Nissan 0 600 328 2,000 0 2,928 2 General Motors 300 1,360 540 0 0 2,200 3 Volkswagen 1000 550 400 0 0 1,950 4 Ford 1600 0 0 0 0 1,600 5 Audi 0 0 0 0 1,300 1,300 6 Honda 0 0 800 0 0 800 7 Fiat 500 0 0 0 0 500 8 Mazda 0 0 500 0 0 500 9 Daimler 300 0 0 0 0 300

Amounts in Millons USD

5 Source: AMIA QUERÉTARO AUTOMOTIVE CLUSTER START UP BY PLANT

1966 1982 2013

1936 1996 2008

1932 1986

1995 2014

1968 1981

2014

2004

1954

2016

6 Source: AMIA, June 2014 & SEDESU QUERÉTARO AUTOMOTIVE CLUSTER LIGHT VEHICLE PRODUCTION SITES

TIJUANA PLANT HERMOSILLO PLANT CHIHUAHUA PLANT

SALTILLO PLANT RAMOS ARIZPE ENGINE PLANT SALTILLO PLANT RAMOS ARIZPE ENGINE PLANT NL PLANT SLP EL SALTO PLANT PLANT MORELOS PLANT

PUEBLA PLANT AGUASCALIENTES I PLANT AGUASCALIENTES II AUDI 2016 PLANT

CUATITLÁN PLANT

SALAMANCA TOYOTA CELAYA SILAO ENGINE TOLUCA PLANT 2019 PLANT PLANT PLANT TOLUCA PLANT TOLUCA PLANT PLANT

7 QUERÉTARO AUTOMOTIVE CLUSTER ENGINEERING CENTERS

AUTOMOTIVE MODELING & DESIGN CENTER, MEXICALI, B.C.

ENGINEERING & VIRTUAL DESIGN CENTER MÉXICO, D.F.

TEST CENTER (ANALYSIS & EMISSIONS LABORATORY) MANZANILLO, COLIMA

TECHNOLOGY DEVELOPMENT CENTER & ANALYSIS EMISSION LABORATORY TECHNICAL DEVELOPMENT & TOLUCA, EDO. DE MÉXICO DESIGN OF PARTS CENTER PUEBLA, PUEBLA.

ENGINEERING & DESIGN CENTER TOLUCA, EDO. DE MÉXICO

8 Source: Economy Ministry, Monografía de la Industria Automotriz, 2012 QUERÉTARO AUTOMOTIVE CLUSTER PRODUCED LIGHT VEHICLES 2014

SALTILLO Ram 1500 [DS] 9 RAMOS ARIZPE #2 Cadillac SRX [GMT166] 7 RAMOS ARIZPE #2 Chevrolet Captiva Sport [GMT311] SALTILLO Ram 2500/3500 [DJ] RAMOS ARIZPE #2 Chevrolet Sonic [G1SC] SALTILLO Ram E-Van [X2/44] SAN LUIS POTOSI Chevrolet Aveo [T250] TOLUCA Fiat 500 [312] SAN LUIS POTOSI Chevrolet B-CUV [G1UO] SAN LUIS POTOSI GMC Granite [G1UG] TOLUCA Jeep B-CUV [TYPE 169] SILAO Chevrolet Silverado [K2XC] 2 SALAMANCA Mazda 2 [J64X] TOLUCA Dodge Journey [JC49] SILAO Chevrolet Silverado HD [K2XCZ] SALAMANCA Mazda 3 [J36C] TOLUCA Fiat Freemont [JF] SILAO GMC Sierra [K2XG]

4 10 AGUASCALIENTES Nissan Sentra [X12F] AGUASCALIENTES Nissan Micra [X02A] CUAUTITLAN #1 Ford B-CUV [B299N] AGUASCALIENTES Nissan Note [X02C] CUAUTITLAN #2 Ford Fiesta [B299N] AGUASCALIENTES Nissan Versa [L02B] HERMOSILLO Ford Fusion [CD391] CUERNAVACA #1 Nissan Tsuru [GS] CUERNAVACA #1 Nissan Versa/Tiida [B11C] HERMOSILLO Lincoln MKZ [CD533] CUERNAVACA #1 Nissan NV200 [X11M] 1 SALAMANCA Toyota EFC [381A] CUERNAVACA #1 Nissan Versa [L02B] CUERNAVACA #2 Nissan Frontier [D22] CUERNAVACA #2 Nissan Frontier [H60A]

7 PUEBLA #1 Volkswagen Jetta [VW361] PUEBLA #1 Volkswagen Jetta SportWagen [VW362] 2 TIJUANA Toyota Tacoma [635N(2)] PUEBLA #1 Volkswagen New Beetle [VW324] TIJUANA Toyota Tacoma [635N] PUEBLA #1 Volkswagen New Beetle Convertible [VW325] PUEBLA #1 SEAT Cordoba [SE251] PUEBLA #1 Volkswagen Polo [VW251] PUEBLA #1 Volkswagen Jetta SportWagen [VW372]

9 Amounts in Millons USD QUERÉTARO AUTOMOTIVE CLUSTER HEAVY VEHICLES PRODUCTION SITES

PLANT ESCOBEDO PLANT SALTILLO Heavy Trucks PLANT MEXICALLI Heavy Duty Trucks Trucks Heavy Duty Busses Chassis Bus Trucks Chassis Bus

PLANT GARCIA N.L. Heavy Duty Trucks Busses Chassis Bus

PLANT S.L.P. Engines

PLANT CD. SAHAGÚN PLANT SILAO Heavy Duty Trucks Heavy Duty Truck. Chassis Bus

PLANT QUERÉTARO Busses Chassis Bus Heavy Duty Truck

PLANT PUEBLA Chassis Bus PLANT TULTITLÁN Buses PLANT TULTITLÁN Chassis Bus Trucks PLANT SAN MARTÍN Busses TEPETLIXPAN PLANT SANTIAGO TIANGUISTENGO Heavy Duty Truck Chassis Bus Busses Heavy Duty Trucks

10 Source: ANPACT, SEDESU QUERÉTARO AUTOMOTIVE CLUSTER PRODUCED HEAVY VEHICLES 2014

Chassis Bus: Models, LINNER, Busses: RUNNER, PICKER y Volvo 7300, 9700 y B7R. Heavy Duty Trucks: OUTSIDER Model M Tracto: Trucks: Model HUSTLER TR57 cascadia, Model C, F y G. Construction: Heavy Duty Truck: Model M GF 900, 3600 y 600c Busses: Busses: Model MBO, 055001826, OH1523/52, R39 OH1623/52L y OH1626/3OL Chassis Bus: Chassis Bus: Models 8.150 y 9.150. Model OF1119/41, OF1319/44, S2, MB01019/44, MB01219/52 y MB01419/60 Heavy Duty Truck: Busses: Models 500 PB 1524/15.1 ton. 500 i6 1727/15.1 ton. 500 1018/10.4 ton y 1727

Heavy Trucks: Model 4300, 4400, 7300, Heavy Duty Trucks: Chassis Bus: 7400, CF500, CF600, Models T370, Models K420IB4X2NB F-650, F-750 y 4200 L700, T800, y K380IB4X2NB Trucks: PB320, T270 y T370. Heavy Duty Truck: Trucks: Prostar, Transtar, Lonestar, Trucks: Model ELF 600 y Model R340LA4X2NA 9200, 9400, 9900, 4300 y 4400. Models T800 y T660. FORWARD 800 Busses: Construction: Construction: Chassis Bus: Models P380CA6X4HSZ y Models T460 y T800. Model 7600. Model ELF 600 BUS P380CB8X4EHZ Chassis Bus: Models 4700, 3000, 3100, 3300.

11 QUERÉTARO AUTOMOTIVE CLUSTER AUTOPARTS MAKERS DISTRIBUTION

NORTHWEST REGION 198 Plants Products / systems: Air conditioning, automotive systems, plastic parts, electrical system parts, engine parts and machining.

NORTHEST REGION

70 Plants Products / Systems: Air conditioning and heating System, interior components, automotive systems.

FORMEX AUTOMOTIVE INDUSTRIES

DENSO

12 Source: PROMÉXICO, Industria de Autopartes,2013 QUERÉTARO AUTOMOTIVE CLUSTER AUTOPARTS MAKERS DISTRIBUTION

CENTRAL REGION

101 Plants Products / systems: seats, air conditioning, bottle type hydraulic jacks, interior components, engine 72 parts, electrical systems, suspension and stamping.

TIER 1 COMPANIES BAJIO REGION IN QUERÉTARO 142 Plants Products / systems: Stamping, electrical components, brake parts, rubber products, engine parts, steering, exhaust system, tires, wheels, transmissions, shock absorbers, steering wheels, bags and air curtains brake systems.

Technik für Automobile

13 Source: PROMÉXICO, Industria de Autopartes,2013 QUERÉTARO AUTOMOTIVE CLUSTER AUTOMOTIVE SECTOR IN QUERÉTARO

More than 300 companies related to the sector.

More than 48’000 jobs in the State.

Qualified workforce at all levels.

A strong local supply chain in the region.

1 4 72 200

OEM National Tier1 Tier2 Distribution Center OEM Trucks Suppliers Suppliers

14 QUERÉTARO AUTOMOTIVE CLUSTER ORIGIN OF INVESTMENT AUTO PARTS MAKERS

Country Plants Percent

21 27% OTHERS USA 15 19% 19% FRANCE 15 19% 28% 5% 6 8% 20% 3 4% 28% GERMANY JAPAN

3 4% México 3 4% QUERÉTARO 3 4% Source: ProMéxico with data from Automotive News.

9 12%

15 Source: QUERÉTARO, SEDESU QUERÉTARO AUTOMOTIVE CLUSTER

GERMANY 20 PLANTS

Technik für Automobile

16 Amounts in Millons USD QUERÉTARO AUTOMOTIVE CLUSTER

USA 15 PLANTS

17 Source: SEDESU QUERÉTARO AUTOMOTIVE CLUSTER

JAPAN 14 PLANTS

Topre Autoparts México SA de CV

18 Source: SEDESU QUERÉTARO AUTOMOTIVE CLUSTER

OTHER PLANTS

19 Source: SEDESU QUERÉTARO AUTOMOTIVE CLUSTER OTHER PLANTS

2 PLANTS

20 Source: SEDESU QUERÉTARO AUTOMOTIVE CLUSTER START UP OF A LOCAL TIER 1

60’s 70’s 80’s

1 5 4

CARDANES FORJAS ENGRANES CÓNICOS

QUERÉTARO P. ESCOBEDO

AFTER NAFTA - 17

90’s 22 65 plant

66 plant

Technik für Automobile BENITO JUÁREZ SISTEMAS DE DIRECCIONES

21 Source: SEDESU QUERÉTARO AUTOMOTIVE CLUSTER START UP OF A LOCAL TIER 1

2000 - 2008

21

CV COMPONENTES O’DONNELL EL MARQUÉS NIHON MAGNESIO

2009 - 2014 30%

20

Topre Autoparts México SA de CV BRAKE SYSTEMS

QUERÉTARO Technik für Automobile EL MARQUÉS EL MARQUÉS

22 Source: SEDESU QUERÉTARO AUTOMOTIVE CLUSTER BODY- EXTERIOR

Roof WINDOWS Sliding Sunroof Windshield Outside Mirror AIR INLET PANELS Trunk Lids Windshield Wiper

Cowl Panel Windshield LOCKS

Washer Nozzle Fuel Door Hood

WHEEL LINERS

DOOR LOCK

DOOR LATCH EMBLEM, NAME Technik für Automobile PLATE DOOR HANDLE Grille WINDOW REGULATOR Upper Latch Door ROCKER MOLDINGS Front Fascia Technik für Automobile Body Side BUMPER Molding MOLDING Door Check TIRE DECORATIVE PROTECTOR WHEELS FENDER 11 WHEEL COVER SUPPLIERS / 14 AUTOPARTS

23 QUERÉTARO AUTOMOTIVE CLUSTER BRAKE SYSTEM

ACTUATOR FOR ELECTRONIC PARKING PARKING BRAKE 12 BRAKE FLUID SUPPLIERS / RESERVOIR 17 MASTER AUTOPARTS

PARKING BRAKE CABLE

ABS MOTOR

BRAKE HOSE BRAKE DRUM

WHEEL CYLINDER

BRUSH HOLDER SYSTEMS FOR ABS Backing Plate Brake Caliper BRAKE PEDAL Return Spring Anchor Pin Bleed FOOT CONTROL SYSTEMS SLIP CONTROL SYSTEM Brake Shoe BRAKE DISC Shoe Discs ABS SENSOR Dust Cap BRAKE SHOE Slide Pin Adjusting Screw

Wheel Studs

24 QUERÉTARO AUTOMOTIVE CLUSTER STEERING SYSTEM

Oil Reservoir STEERING PUMP

STEERING HOSE Wheel Speed Sensor

BALL JOINT STEERING WHEEL

Bellows Bots Adjustable Steering

TRACK ROD STEERING COLUMN

Universal Joint

STEERING GEAR BOX STEERING COLUMN

4 Rack SUPPLIERS / 10 STEERING ARM AUTOPARTS TIE ROD END

25 QUERÉTARO AUTOMOTIVE CLUSTER SUSPENSION SYSTEM

SHOCK ABSORBER Axles Damper Spring

STRUTS

STABILIZER BAR BUSHINGS Rear Hub

Lower Control Arm

Lower Control Arm

Trailing Arm

Trailing Arm 5 Bracket SUPPLIERS / TOP STRUT MOUNT 5 BUSHINGS Front Hub AUTOPARTS Pitman Arm

26 QUERÉTARO AUTOMOTIVE CLUSTER AIR SYSTEM

5 SUPPLIERS / AIR-INTAKE AND COOLANT RECOVERY CHANNELING COMPONENTS 4 /PRESSURE SURGE TANKS AUTOPARTS Radiator Tank Expansion

Water Pump

Compressor

Thermoswitch

Cooling Fan

Radiator

Oil Cooler

Radiator Cap A/C Control Panel AIR FILTER Radiator Drain Plug A/C HOSES Termostat Radiator Hose Cooler Piping

27 QUERÉTARO AUTOMOTIVE CLUSTER ELECTRICAL SYSTEM

ELECTRIC Sunroof Motors ANTENNA INTERIOR LIGHTS Stereo Speaker

CAR STEREO Rear Turn Gauges Signal PCB ASSEMBLY Wiper Motor ELECTRIC POWER STEERING Injection System

Alternator Voltage Regulator

Battery

Alarm System

ALTERNATOR WINDOW MOTOR Ignition Coil Switches Instrument Panel HEADLIGHTS POWER MIRRORS MOTOR HEADLAMP Fuse Box 10 Horn Front Turn Auto Ignition SUPPLIERS / STARTER Cruise Switch Signal Wiring AUTOMOTIVE Control 12 HARNESSES AUTOPARTS

28 QUERÉTARO AUTOMOTIVE CLUSTER FUEL SYSTEM

CATALYST SYSTEMS AND CATALYST CONVERTORS

Fuel Pump Evaporative Emission Control Canister Fuel Pressure Regulador EXHAUST SYSTEMS

Air Cleaner

Muffler

FUEL OPENER CABLE

Valve for Fuel Tank FUEL TANK 6 SUPPLIERS / Turbo FUEL FILTER Fuel 5 AUTOPARTS

29 QUERÉTARO AUTOMOTIVE CLUSTER SAFETY & COMFORT

CURTAIN Rear View AIRBAG Mirror 5 Car Visors PASSENGER AIRBAG SUPPLIERS / TANK WASHER 7 RESERVOIR AUTOPARTS

Hot Washer

Headlamp Washing pumps

Seat Belt

KNEE AIRBAGS Bull Bar HOOD PULL DRIVER CABLE HOSES FOR AIRBAG AIRBAG

30 QUERÉTARO AUTOMOTIVE CLUSTER SAFETY & COMFORT (INTERIOR)

CONTROL PANEL LEATHER WRAPPED AMPLIFIERS E COMPONENTS / WOOD & ALUMINIUM ROTARY LIGHT SWITCH STEERING WHEELS VENTILATORS INFOTAINMENT CONTROL BUTTONS DECORATIVE COMPONENTS 11 SUPPLIERS / 14 AUTOPARTS

WINDOW CONTROL INTERIOR TRIM LEATHER CENTERS GLOVE BOX HEAD RESTRAINT SWITCHES WRAPPED CONSOLE SHIFT KNOBS FOAM

ARMRESTS

SEAT CONTROL SEAT CONTROL CABLE SWITCHES

31 QUERÉTARO AUTOMOTIVE CLUSTER STRUCTURE

Topre Autoparts México SA de CV SSASH PARTITIONS REAR PILLAR GLASS CHANNELS 7 Topre Autoparts México SA de CV SUPPLIERS / FRONT PILLAR 15 CROSS CAR AUTOPARTS BEAM

Battery Support

Topre Autoparts México SA de CV

RADIATOR CORE SUPPORT

ROLLFORMED BUMPER COATING, PAINTING, AND FINISHING WHEEL HOUSING

Topre Autoparts México SA de CV CENTER PILLAR

Topre Autoparts México SA de CV FRONT BUMPER METAL AIR BAG

SUPPORT THERMAL AND Topre Autoparts México SA de CV ACOUSTIC ISOLATION DOOR FRAME Cross member SPRING Chassis Structures

32 QUERÉTARO AUTOMOTIVE CLUSTER TRANSMISSION

Clutch

CABLE FOR AUTOMATIC TRANSMISSION

TRANSMISSION

GEAR SHIFT ASSEMBLIES

Transmisión Bell

YOKES RING GEARS DRIVE SHAFT UNIVERSAL JOINT CROSS

Clutch Pedal CV Joint CARDAN

Differential 4 SUPPLIERS / 9 AUTOPARTS CONICAL GEARS

33 QUERÉTARO AUTOMOTIVE CLUSTER ENGINE

Oil Dipstick ENGINE COVER Camshaft 4 Oil Dipstick Funnel Cam Tower SUPPLIERS /

Oil Cap 4 Rocker Arm AUTOPARTS Spark Plugs Wire Other Parts Spark Plugs

Valve Cover Balancer Shaft Valve Cover Spacer Balance Shafts Modules Camshaft Position Sensor Water Pump Hoses Engine

CYLINDER HEAD COVER Balancer Shaft Sprocket

ENGINE MOUNT Cylinder Head Valve Seat Cylinder Head Camshaft Gear SEALS, GASKET

Timing Belt Cylinder

Timing Gear Cam Holder Seal Flywheel Starter Crown/Ring Crankshaft Pulley Rings OIL FILTER Piston Oil Pump Block Crankshaft Damper Cam Bearing Set Crankcase Crankshaft Position Oil Control Valve Sensor

34