ZF Group, a German global technology company supplying systems for passenger cars, commercial vehicles and industrial technology, will establish a new production facility at it factory in Toluca, Mexico. The expansion is expected to create an additional 150 jobs over the next two years and create a plant that is approximately 8,000m² larger than the existing one.

The manufacturing complex will feature high-capacity assembly lines for the right-in-sequence manufacturing of front and rear axles and suspension modules for electric passenger vehicles.

Construction has already begun and is scheduled to be completed in the third quarter of 2023. The company will begin hiring new employees during the third quarter, in preparation for the start of production in the first quarter of 2024.

As the automotive industry evolves to become more electrified, automated and connected, manufacturing capabilities are evolving as well. ZF Group’s investment will tap into this.

“This investment demonstrates our commitment to our customers and employees in the region, as well as our commitment to advancing next-generation mobility,” said Dale Chon, ZF Group’s vice-president of automotive chassis technology for the North American region.

ZF’s investment in Toluca is the latest in a series of major investments the company has made in Mexico in recent years. For example, in 2022, it invested more than $50m to increase the production of control arms, stabiliser arms and tie rod ends in a different plant, also in the city of Toluca.

ZF has 18 locations in the country, including manufacturing plants for chassis, steering, brakes and other components, and three production centres dedicated to aftersales. In addition, it opened a new research and development and shared services centre in Monterrey in 2022, and is building a manufacturing plant on the same site to begin production of advanced electronics and security devices in 2023.