The automotive company Dana prepares the expansion of its cardans plant in Querétaro; with this, the search for local and regional suppliers continues to supply its supply needs.

It plans to expand the supply of cardan shafts for light vehicle assemblers in the country, explained the purchasing director of Dana de México, Raúl Lizarriturri, during the Automotive Suppliers Conference 2021 coordinated by the Querétaro Automotive Cluster.

The firm's growth plans also include other production centers in the country and are in line with the vertical integration strategy of its supply system.

This integration means having the components that we require to be able to deliver a finished product within the company, or in any other region of the country.

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The company's supply needs are also linked to the growth of new markets, such as electrification, in addition to the effects that are impacting global supply chains and that make it necessary to generate increasingly closer supply chains.

The list of requirements includes items such as a cardboard box combined with a wooden pallet, coatings, oven maintenance services, and packaging materials.

For example, an interesting collaboration is made by Dana with PACCAR that manufactures heavy trucks, where it supports the production of a 100% electric truck, complementing the engine and technology. The first unit has already been delivered and is rolling in Alaska, whose metal components are manufactured in Querétaro.

Another factor that demands adjustments in supply chains are the changes experienced by logistics systems at the global level and which have had a strong impact in the last year and a half, particularly maritime transportation between China and the United States.

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The Dana executive explained that the costs of containers for maritime shipments from China to the United States went from oscillating between 1,900 and 3,000 dollars in prepandemic to between 16,000 and 23,000 dollars during October.

Added to this is the congestion in ports. In October 2019 it was estimated that it was from a ship waiting to be unloaded, and in October 2021 there are more than 40 waiting.

The energy crisis in China is another element that complicates the constant flow of supply chains with this region of the world.

These factors lead companies to totally rethink their supply chains, the location of suppliers and regionalization, in order to generate a supply base within the country or near the production centers.

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