Carrillo, J. “Delphi Mexico: From an assembly model to centralized coordination model” en Tetsuji Kawamura (ed.) Gurobaru Keizaika no Amerika Nikkei Koujo (Japanese Transplants in North America Under Global Economy), Toyokeizaishinpo sha, Tokyo, 2005, pp. 333-348 (en Japonés) DELPHI MEXICO: FROM AN ASSEMBLY MODEL TO CENTRALIZED COORDINATION MODEL1 By Jorge Carrillo2 Social Studies Department El Colegio de la Frontera Norte [email protected] Introduction. Delphi a GM spin-off specializing in parts and components has become Mexico's third largest private employer in Mexico with 55 plants and 70,000 workers. Since 1978 until now Delphi had had a meteoric productive and economic growth in a trajectory characterized by industrial upgrading and a learning process. Although the presence of Delphi is along the all country, its main capacity is located in Ciudad Juarez, frontier with El Paso, Texas. Delphi Automotive Systems separated from GM in 1995 and became fully independent in 1999. By 2001 it employed more than 193,000 persons around the world, and operated 198 manufacturing plants, 53 sales and service centers, 31 technical centers, and 44 joint ventures, located in 43 countries. The Mexican role of the firm has been growing since its first plant in 1978. A third of its Delphi’s worldwide operations are located in this country. But their importance are not only economic and social for the massive employment generated, the foreign exchange that produced and the foreign direct investment (FDI) involve. Other aspects are highly important such a research and development (R&D), technology, lean organization, supplying chain, labor skill and participation in the regional development. 1 This paper is part of a more comprehensive research project entitled “Technological Learning & Industrial Upgrading: Building Innovation Competencies in the Maquiladora Industry” financed by CONACYT no. 35947s. 2 This chapter is basses in a more extensive documents: Alonso y Carrillo, 1996; Carrillo and Hualde, 1998; Lara Rivero and Carrillo, 2003; Carrillo and Lara, 2003. 1 Although the Delphi trajectory in Mexico has been long is clearly a process of industrial upgrading and learning. Delphi’s growth as an employer has coincided with an upgrading of the firm’s activities in Mexico from simple assembly to centralized coordination of functions including sophisticated product design, development, and research. This shift has enriched workplace activities in several of Delphi’s plants and, more importantly, facilitated the establishment of the first intra-firm network of technical centers and manufacturing plants within Mexico’s export industry. This process has been conceptualized like the generation of maquiladora plants3 (Carrillo and Hualde, 1998,). The main objective of this chapter is to show the importance of a FDI in Mexico through the role of American transplant. The story could be synthesized like vertical disintegration corporate strategy to functional regional integration. The Delphi case shows a success story of adaptation model (Abo, editor, 1984) and the role that global players could take in an intermediated industrialized country such as Mexico. However, new international scenario is taking place in Mexico opening different paths trajectories. I. The Globalization of Delphi 1. Overview of the Firm Until 1995, Delphi Automotive Systems was known as General Motors’ Automotive Components Group Worldwide (ACGW). The division was renamed to reflect its increasingly independent role in the industry. Previously a fully integrated division of General Motors supplying parts exclusively to its parent company’s assembly plants, in the early 1990s Delphi came under pressure to diversify its customer base and improve its quality to compete against other suppliers seeking contracts with General Motors. By 1997, more than 40% of Delphi’s sales were to entities outside GM’s North 3 The government of Mexico in 1965 first established the Maquiladora program. The maquiladoras have undergone a dynamic evolution over the last four decades. In the mid-1960s, maquiladoras consisted primarily of basic assembly operations taking advantage of Mexico’s low labor costs (first generation). By the 1980s, U.S. multinationals representing various industrial sectors established maquiladora plants along the U.S.-Mexico border. Japanese and European companies also established maquiladora plants in Mexico to compete in the U.S. market. Since the 1980s, some firms moved from low skilled assembly work to more advanced manufacturing operations (second generation). Over the years, as maquiladoras evolved and expanded, the term maquiladora has come to be used loosely to refer to almost any subsidiary plant of a foreign company involved in export from Mexico, particularly those located along the U.S. border. More research and development activities running by engineers were taken since the mid of nineties (Alonso and Carrillo, 1996; GAO, 2003). 2 American operations, and the company included Ford, Honda, Toyota, and Volkswagen, among its customers. In the summer of 1997, Delphi moved it headquarters from within the Pontiac Motor Division building to its own facility in Troy, Michigan. The following year, GM announced its intention that Delphi be fully independent by the end of 1999 in preparation for an IPO that would divest GM of 15-20% of Delphi, a further step in the divestiture of its former division. Today, Delphi stands as an independent company, yet remains General Motors’ most important first tier supplier. (Soden, et al., 1999) 2. Global Status Delphi is a global firm, with operation in 38 countries. Its roughly 175 manufacturing sites4, 77 joint ventures, and 27 technical centers employ over 213,000 people worldwide (Delphi Presentation Documents) and generate annual revenue of $32 billion (Soden, et al., 1999). Though a global firm, Delphi’s facilities are grouped in particular countries, and the two biggest division appear to have developed unique groupings of plants in particular countries within the company’s geographic regions. Of Packard’s European low wages countries and Middle Eastern sites are the main locations. And of Delphi Energy and Chassis, France and the United Kingdom. Similar groupings can be seen within the firms’ other regions. For instance, of the 44 North American5 plants, 40 are in the United States. Similarly, of Delphi’s 48 wholly owned sites south of the United States, Mexico (33) and Brazil (13) are home to 46, and Mexico has eleven of the company’s nineteen joint ventures. Within the Asia and Pacific region, joint ventures outnumber wholly owned sites 25 to 16, phenomena that, due to its unevenness, appears to reflect national regulations rather than corporate strategy. Delphi owns six plants in India, but has no joint ventures. However, joint ventures outnumber wholly owned sites in China by twelve to two, and in South Korea by ten to one (Delphi internal documents). Finally, it is worth noting that as a general trend, Delphi’s plants in lower wage countries are larger and employ more workers than their facilities higher wage countries. 4 5 A site may contain more than one plant. Delphi does not classify Mexico as part of North America 3 The exception being a few very large plants in the United States, such as the Delco plant in Kokoma, Indiana with more than 5,000 hourly employees. (Delphi Documents) 3. Structure of Delphi Delphi is a system integrator firm specializes in four major areas: batteries, fuel injection systems, air-purification systems, and energy and motor systems. Their structure is based on seven divisions named to describe their general roles in the firm: Chassis, Delco Electronics, Energy & Engine, Harrison Thermal, Interior, Packard Electric and Saginaw Steering. All divisions produce roughly 167 products, a dramatic reduction from the 13 divisions that produced over 300 products in 1988 (Soden, et al., 1999). By far the largest two divisions of Delphi are Packard Electric and Energy and Chassis. Packard Electric claims 117 manufacturing sites in 29 countries. Delphi Energy and Chassis have another 81 sites. 4. Delphi in the United States and Canada Delphi’s history in the United States has largely followed the trajectory of the auto industry in the United States. Many of its division and plants were originally independent companies. But over the years, General Motors purchased many of these companies and opened new plants in an effort to become a fully vertically integrated organization implementing Fordist production techniques. At one time, GM took pride in being able to build cars nearly entirely from parts they produced themselves. Beginning in the early 1970s, the market for automobiles changed and GM found itself in competition with European and, perhaps more importantly, Japanese firms (Koido, 1992). These firms operated under conditions of lean production, which gave them significant cost, efficiency, and productivity advantages over North American auto companies. In particular, Japanese firms reduced their risk and costs by contracting for parts rather than producing them themselves. In response, GM began two trends that would continue until it spun Delphi off as its own company. First, GM began moving facilities from the heavily unionized industrialized mid-west that had traditionally been its base to less industrialized areas of the south. Second, the company began contracting out for autoparts rather than 4 producing them all in-house. This shift has been a source of tension between the United Auto Workers and GM, and actually intensified in the 1990s as the southward move continued and increasing numbers of jobs were shifted from the United States to Mexico. II. Delphi’s Importance in Mexico 1. Overview Mexico plays a very important role for the Delphi (Lara Rivero and Carrillo, 2003). One third of employment is located in Mexico, and the volume is higher than in U.S. (Table 1). Of the 69 establishments in the Packard division, 65% were located in Mexico, and 34% in the U.S. and Canada. Delphi is the third Mexico’s largest private sector employers. By year 2000 has close to 80,000 workers at 66 plants in 13 states (Carrillo and Hinojosa, 2001). The two states with the most plants are Chihuahua and Tamaulipas, with 23 and 10 respectively. All Delphi’s divisions are located in Mexico and the biggest worldwide Delphi’s R&D facility is located in this country. The division of Delphi with the largest presence in the country is Packard Electric (the most intensive labor division) with 45 plants in 10 states, and ten plants in Juarez alone. Together, the various divisions of Delphi produce roughly forty different products in Mexico (Maps 1) (Table 1). Wages in Mexico for production workers are approximately one-tenth those in the United States, though the company includes benefits such as free transportation, subsidized meals, and low cost loans for housing. This last benefit, however, is a rarity since it is normally only available after a certain number of years and Delphi’s turnover in Mexico is roughly 50% annually (Soden, et al., 1999). In recent years, Delphi’s presence has meant a lot more to the Mexican economy than even its employment figures indicate. Since the implementation of NAFTA, Delphi has dramatically expanded its backward linkages in the country. For instance, Delphi’s purchase from Mexican suppliers jumped from $37 million in 1997 to $300 million in 2000 (Carrillo and Hinojosa, 2001). The way Delphi’s history evolved can be reconstructed in two stages, with one period from 1978 to 1994, and a second period from 1995 to 2002. The division between 5 the two periods corresponds to the beginning of operations of a technical center in Mexico in 1995, modifying the way in which coordination was carried out among the Delphi divisions located in Mexico (Lara Rivero y Carrillo, 2003). 2. Delphi in Chihuahua Chihuahua is the state in which Delphi is most active, with three of its divisions operating 23 plants. Packard Electrical Systems alone has 18 of its 38 Mexican plants in the state. Delphi Energy & Chassis has 3 plants, and Interiors and Lighting has 2 plants (Map 1). Among the eight cities in Chihuahua that are home to Delphi sites, Juarez has the most with 40 plants, more than any other city in Mexico (and 20,000 employees). Its close proximity to the United States is one reason Juarez is a popular location. However, the performance of the plants in Juarez is another. Packard first built a plant in Juarez in 1975 (Lara Rivero, 2001) to take advantage of the wage differential between Mexican workers and the division’s unionized employees in Warren, Ohio. At that time the manufacturing in Juarez was uncomplicated and typical of first generation maquiladoras (Carrillo and Hualde, 1998). Since then, Delphi’s presence in Juarez has grown so that it is now the city’s largest private sector employer with over 23,000 workers (Soden, et al., 1999). In addition, the Packard plants have become more sophisticated, advancing to second generation maquiladoras producing more complex products and implementing techniques of lean production. Delphi’s latest investment, the technology center, is now at the heart of what appears to be a cluster of plants and firms gaining a competitive advantage in the production of wire harnesses through institutional learning and knowledge sharing requiring both formal and informal relationships (Carrillo and Hualde, 1998). A stark contrast can be seen between the demographics of Delphi’s hourly and salaried employees in Juarez. First, the salaried staff is 77% male. 58% of hourly workers are male. The age of the workers is different as well. Over 65% of hourly workers have thirty years of age or less, and almost 12% are under the age of twenty-one. On the other hand, over 80% of the salaried staff are between the ages of twenty-six and forty. None are younger than twenty-one. These age differences mirror the educational 6 gap between the two groups. Slightly more than 12% of hourly workers have completed high school, and more than half have not completed junior high. On the other hand, over 90% of salaried staff finished high school, and almost 60% have university degrees. Salaried staff are much more likely to maintain their employment as well, with nearly half of them claiming more than six years tenure. Conversely, nearly half of all hourly employees have less than one year with the firm (Delphi Document Presentation). III. Juarez R&D facility (called Mexican Technical Center or MTC) 1. The importance of MTC and location factors On July 2, 1995 Delphi opened Mexico’s first technical center for research, design, and development in Ciudad Juarez, with the initial investment of $150 million, to where it was transferred from Anderson, Indiana. This strategic decision resulted from the need to reduce production cycles, delivery times, and total costs. According to the managers who were interviewed6, there were three main reasons for the choice of location: First, the location was convenient. Being just across the border from El Paso, the center’s U.S. employees could work in Mexico and live in the United States. Juarez is also home to forty of Delphi’s plants. Second, Delphi’s plants in Juarez have fifteen years of institutional learning, which will integrate well with a technical center. Finally, the quality and competency of Mexican engineers allowed Delphi to cut costs without sacrificing quality.7 The state of Chihuahua has supported educational infrastructure to educate engineers, as well as many support public and private institutions (Villavicenio, 2003). In addition, the plethora of maquiladoras in the area assures a constant supply of engineers, many of who find themselves in supervisory roles and desire the opportunity use their engineering skills. The MTC initiated as part of three structural modifications in the automotive sector: a) the transition from an integral design to a modular design; b) the creation of 6 Interviews with managers at Delphi-MTC, Ciudad Juarez (1996, 1999, 2000, 2001, 2002). On the contrary to Delphi’s manufacture plants, which employed 12% of skill people (basically technicians and some engineers) and 80% of production workers, the MTC occupied mainly people with university or technical degrees, basically engineers. 7 7 global supplying; and c) the ongoing increase in the electronic content of automobiles. These general factors operated in a particular way in Mexico and permit the synchronization of R&D and manufacturing activities at regional and global scales (Lara Rivero and Carrillo, 2003). 2. A brief history of employment and design-coordination capabilities Before 1995, the R&D activities of Delphi´s divisions in Mexico, where concentrated in U.S.A. MTC works for all divisions of Delphi and employs staff from all divisions as well as other independent component suppliers. At the beginning, DelphiEnergy decided to relocate one of its seven R&D centers outside the U.S.A. for the first time in its history. Thus, the Anderson technical center was transferred to Juarez. MTC began by contracting 370 persons, 20 percent foreign engineers from Anderson who were offered residence in El Paso and better salaries if they would transfer to Juarez, and 80 percent Mexican engineers and technicians. Mexican engineers and technicians were sent to GM's Anderson center for several months to receive the necessary training in critical areas. There are four broad salary levels within the center, and a range within each level. At the beginning Mexican engineer at the center will typically earn $900 per month, significantly three times less than their U.S. counterparts (Carrillo and Hualde, 1998). While the remaining 26 Delphi technical centers operate with approximately 500 people, MTC employs 2,100; most of which are Mexican engineers. The first period of MTC was concentrated to developed solenoids and sensors in order to be produced in their maquila-plant SEC, only few miles from MTC. In 1980, Delphi’s Energy division opened its Electrical System and Switch (SEC) plant in Juarez. Notable at the time, the SEC plant was the first maquiladora to employ more men than women and implement synchronized manufacturing with techniques such as JIT, cellular production, and firm within a firm. Making a diversity of products, SEC’s 4200 employees receive an average of 70 hours of training annually. The plant is certified QS9000 and supplies plants in the U.S. owned by GM and Ford (and has won Ford’s Q1 award), as well as almost 100 other clients. SEC also maintains strategic alliances with national and international firms (Carrillo, 1995). 8 The central activities from the beginning were full package at MTC: from the idea to manufacture, going by prototypes, test, manufacturability and post-sales services. The second period were an explosion of Delphi capabilities and synergies. All six divisions were located in a three building complex for doing R&D in different products for future models of cars, and have economies of scale in labs, test rooms, machines shops, etc. More than that, all engineering projects are fully integrated by team works in different levels with multi-skill engineers using same administrative departments such as supply management chain, training, productive capabilities, etc. The geographic concentration of divisions for jointly carrying out R&D activities has made it possible to transfer and integrate (Lara Rivero and Carrillo, 2003): i) administrative knowledge possessed by the various divisions; ii) technological and organizational abilities and information; iii) synergy among the different work groups; and iv) joint activities for developing more coherent diversification strategies, with the capabilities and trajectories of the cluster of divisions in Juarez. As Lara Rivero and Carrillo (2003) shows four elements could explain the explosion of Delphi capabilities8 mentioned above: 1. The construction of modern, complex technological infrastructure. This took place according to the expansion plan for each division. In 1995 Delco-Remy finished moving its engineering area in sensors and actuators to Mexico, including design, product, process and testing engineering, and performance and durability laboratories. In 1996 Delphi-Saginaw installed temporary certification and testing laboratories. In 1998 Delphi-Energy established a process development and methods laboratory. That same year Delphi-Harrison installed packing laboratories. And in 1999 new building were constructed. That same year Delphi-Harrison established global manufacturing systems. And the year 2000 marked the opening of laboratories for electronic manufacturing and testing, and systems and software testing. 8 Other authors that have been show the upgrading capabilities at Delphi MTC are Aryenis Arias and Dutrenit Gabriela (2003); Dutrenit and Vera-Cruz (2003). 9 2. The information technology (IT) system. MTC has their own IT department but also it houses EDS, an outsourcing firm. Because this others companies work inside the complex, Delphi MTC has the model of condominium company. The IT represents the nervous central system of Delphi-Mexico. Delphi has more than 8,000 PCs and all has the Apollo system, internet, e-mail, CAD, e-procurement, aplications, services, help desk, etc. According to the IT manager interview9, the Delphi IT system in Mexico is unique in world, and neihter U.S.A. has this level. 3. The centralization of administrative functions. Unlike other Delphi centers located in other parts of the world, MTC is the only center that integrates six of the seven Delphi divisions in a single administrative unit. In the year 2000 a project for implementing a Common System of Inventory Control was initiated in the technical center (Delphi, 2001). At the end of 2001, a process of concentrating and homogenizing compensation systems was initiated. Therefore, the technical center is progressively becoming a nucleus of concentrated technological and administrative capacities, which transforms it into a gravitational axis of resources in a cognitive framework, and in the control, and monitoring of the six divisions and the establishments located in Mexico. The concentration of administrative, control and monitoring activities in a single geographical area makes it possible for MTC to reduce the costs of internal transactions, by reducing the costs of coordination between business units. 4. And the productive capability and potential market. There is no doubt that Mexico is part of a global production and distribution platform, due to the advantages associated with the region. The actual Mexican government has the goal of doubling the production capacity (from to 2 million to 4 million cars) and extends the supplier network development. If that occur Delphi has a tremendous potential business. 3. Model of organization MTC was a completely new type of operation for all Mexico, responsible not just for the production of specialized auto parts, but for integrated design and manufacturing. 9 See footnote no. 6. 10 This center provide a “full package” service in four phases (see Box 1), covering everything from a general idea (even "before there’s anything on paper") to development of the complete product and manufacturing system, including the actual production lines (see Box 1). All phases are interconnected in framework activities called Product Development Process (PDP). Box 1 MTC four phases The MTC depending on projects works in accordance with the development work teams under a strategic full package plan composed of four phases. The first phase is the initial idea. The client completes an application that often is only a concept or an idea of what is needed. Here, the exchange of information, negotiation, and so forth, begins. Afterward, the team works independently of the client in workgroups designated by the project. These groups are integrated by product, process, test and manufacture engineers, and one leader coordinator. Each group has support technical and administrative areas and laboratories. They work on very advanced products that are not expected to be in commercial production until next 6-8 years. The second phase is the shape of the design. Here, the project is defined with the initial concept proposal and the establishment of different work teams under PDP activities. The project is conducted more closely with the client. Subsequently, the product proceeds to the concept approval phase. The third phase is the product validation. Once the prototype is approved, the necessary equipment for the construction and validation of the concept is bought and adapted. The product is no longer a sample, but many pieces (500, for example, but depending of the product). Work is now conducted for manufacturability’ design. The production equipment is made, designed, and approved, and the manufacturing system is installed. The team designs the layout, the manuals, and so forth. The assembly lines are designed, constructed, adapted, and implemented with equipment, machinery, and tools. The fourth phase consists of the continued improvement of the design and prototypes as well as the manufacturing system (see Carrillo and Hualde, 1998, and Carrillo and Lara Rivero, 2003). Concentration of the divisions makes it possible to participate in different projects, but especially, the reduction in innovation costs due to intensive human resources and the relatively low wages of engineers and personnel in Mexico with respect to those in the U.S.A. Low wages prevailing in many countries where Delphi engineering centers are located, such as Mexico, has made it possible to hire more engineers without increasing R&D costs, and at the same time, to increase sales linked to engineering and development by 6% (Lara Rivero y Carrillo, 2003). According to Batenberg III, Delphi’s 11 CEO, the fact that wages are low in many technical centers “enriches our strategy to do engineering on a global basis.” (Delphi, 2001). Finally, the economic performance of MTC has been outstanding. MTC is typically working on over 100 products at any one time, finishing ten in any calendar year. In year 2000 MTC produce 12,000 prototypes. Almost all OEMs firms are Delphi’s clients and it is expected to attend more projects in the near future. The intensive use of engineering at MTC permits the reduction in time innovation and costs. In the first year of operations it was able to cut total costs by 60 percent and delivery time by 20 percent compared with the Anderson technical center. The organizational model use the lean production techniques and permit to coordinated multiple activities and capabilities along the Delphi’s divisions. The productivity results have been impressive: the projects duration average was 45 months in 1995, and for 1998 was 20 months, but has been accomplished in as little as thirteen. Conclusion. The process of diversification undertaken by Delphi as an automotive firm began in May 1999 with the search for new market segments such as: aerospace, medical equipment, computers, entertainment and commercial vehicles. Other market segments in the high tech category include: connection systems, consumer electronics, and electronic sensors and controls. In March 2002, the corporation decided to change its name looking for a new global economic and technological strategy aimed at initiating relations with clients in various markets to offer various products, and not just auto parts (Lara and Carrillo, 2003). Delphi’s quantitative and qualitative growth in Mexico is critically dependent on its local capability in managing the processes in its various divisions and establishments. Its activity in Mexico beginning with the assembly of wire harnesses, and it has been able to upgrade to the integration of manufacture of products with different technologies to research, design and development, with functions of centralized coordination; taken a role of regional head quarter’s functions. Delphi becomes involved in R&D activities outside its host country when it perceives a set of technological, administrative, organization and financial advantages in 12 its foreign subsidiary companies. But it also invests in R&D to “create” or acquire advantages, and combine them with those already existing in the context of the transition from combustion motor technology to new technologies (Lara Rivero and Carrillo, 2003). Although the state of the art or basic science starting from which the technical center created the designs is a corporate decision-making, a high degree of decentralization of the decisions exists at MTC. This new stage of Delphi is associated with their new role in Mexico like centralized coordinating firm (called fourth generation) (Carrillo and Lara Rivero, 2003). The Mexican government has recognized this new role in update legislation (2003) with a new figure, ‘control company’, which allows to make in combined form all the steps that before the government demanded for separated to each one of those near 60 Delphi plants. But not everything is stability and growth. In August of 2003 Delphi executives declared that could move part of its production operations out of Mexico due to high costs (work and shipping) and poor infrastructure. Delphi Mexico production volumes have fails by 3 to 5 percent (2003-2002), and the company is evaluating the possibility of moving production contracts to countries including Brazil, China and Eastern Europe (Reuters, Aug. 27 and The Economist Sep 24, 2003). At beginning of the 2003 Delphi reduced their production lines in Mexico (Reforms, March 31) and during 2002-03 closed some of their plants and reduced personal. The future scenario is less predictable that it was during the nineties, and especially during the NAFTA transition period (1995-2001). On the one hand, it is evident that Delphi facilities (manufacture and technical center) have more technological capabilities, more skill people, more local support institutions and more functional coordination (Arias and Dutrenit, 2003; Dutrenit and Vera-Cruz 2003; Lara and Carrillo, 2003; Carrillo and Lara, 2003; Vera-Cruz, 2003; Villaviciencio, 2003). But on the other hand, more pressures exist to reduced cost productions (in fact the salary gap spreads to disappear: the wage of a fresh engineer is only twice bigger in US than in Mexico), and more aggressive international competitiveness is taken place (China and India already have Delphi’s technical center). 13 BIBLIOGRAPHY Abo, Tetsu (ed.) (1994): Hybrid Factory. The Japanese Production System in the United States, New York/Oxford: Oxford University Press. 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Mexico, October 22- 24, 2003 (www.maquiladoras.info) Villavicencio, Daniel (2003): La configuración del Entorno Institucional de las Maquiladoras y las nuevas formas de interacción binacional, Universidad Autonoma Metroplotina-Xochimilco (CONACYT Project document www.maquialdoras.info) 15 TABLE 1 DELPHI’S EXTENSIVE GLOBAL PRESENCE (2000) US/CANADA Manufacturing Sites: 44 Employment: 78,700 Joint Ventures: 13 Technical Centers: 14 TOTAL DELPHI 175 Manufacturing sites 213,000 Employees worldwide 77 Joint ventures 27 Technical Centers EUROPE/MIDDLE EAST Manufacturing Sites: 68 Employment: 36,700 Joint Ventures: 20 Technical Centers: 7 MEXICO/S.AMERICA Manufacturing Sites: 49 Employment: 85,300 Joint Ventures: 19 Technical Centers: 4 ASIA PACIFIC Manufacturing Sites: 14 Employment: 6,000 Joint Ventures: 25 Technical Centers: 2 Source: Based on data from Delphi (2000). 16
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