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Outsourcing

Toyota outsources over 70% of its vehicle content to reduce costs and improve quality management while maintaining control over processes. The company emphasizes the importance of trust and innovation with suppliers, despite the risks associated with outsourcing, such as supplier failures and loss of confidential information. Other companies like Nissan and GM are also exploring outsourcing to enhance efficiency, though GM is shifting towards insourcing to regain control over IT services.
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0% found this document useful (0 votes)
40 views17 pages

Outsourcing

Toyota outsources over 70% of its vehicle content to reduce costs and improve quality management while maintaining control over processes. The company emphasizes the importance of trust and innovation with suppliers, despite the risks associated with outsourcing, such as supplier failures and loss of confidential information. Other companies like Nissan and GM are also exploring outsourcing to enhance efficiency, though GM is shifting towards insourcing to regain control over IT services.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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OUT SOURCING

TOYOTA

Japanese companies like Toyota, unlike American companies,


subcontract more than 70% of its vehicle content. To begin with, the "outsourcing in
a continuum is the new reality of companies" (2002). He argued that "companies
they will be more likely to outsource a function if there are multiple reasons to do so
(2006). These multiple reasons are the following: a) acquire new skills and a
better management, b) improve controls, c) focus on strategy functions and the
nucleus, d) avoid large investments, e) help a rapidly growing situation, f)
manage overflow situations and g) improve flexibility and ratio. Toyota
even though he understands that customers expect reliable quality, regardless of who
makes the engine, radio, seat, etc. of their cars. However, outsourcing does not
exempts Toyota from responsibility. Toyota is known for having outsourced engines,
as well as software and hardware.

The main reason why Toyota outsources is that it is a master of the


reduction of internal costs and expects its suppliers to master this discipline.
Toyota makes use of functional outsourcing that is pushing certain
services to members or suppliers. The advantages of functional outsourcing for
Toyota stands out with market leverage, with redundancy capabilities and
maintenance of control over outsourcing processes although this process can
to give rise to a non-existence of end-to-end management.

The association with Toyota, Toyota demands punctuality, innovation, quality, and reduction.
of costs. What Toyota offers its suppliers is to innovate the product design to
through value engineering. Because Toyota responds to the concerns of the
suppliers with integrity and capability, a great level of trust has been established
professional with its suppliers and also through the development of a sophisticated
system that encompasses people, processes, tools, and technology and extends to everyone
the partners of the lean company. Although cost reduction is critical for Toyota, the
quality must not be sacrificed.
The second reason for subcontracting Toyota is to further improve quality management.
A viable option to eliminate poor management, in exchange for quality management, is to
through the outsourcing of functional areas to the suppliers. Through this
process, a relative degree of pressure will also be relieved. The result would be a control
enough about the operation.

The third reason is to focus on strategic functions and the core at the same time.
avoid large investments. The tactical part of the distribution function would allow
administration to focus on issues related to strategy such as
market position and product development in exchange. On the other hand, the acquisition of
a larger market share requires a support mechanism for the overloads of
function. Conversion of fixed costs into variable costs, as well as managing the ratios of
improved performance the profitability per person and the business as a whole.

One of the disadvantages of outsourcing is the insufficiency of suppliers. The failures


from suppliers, in fact, they equate to the company's failure are serious risks,
not to mention, the confidential information sent by companies adds to the
limitations since suppliers have the right and control over the information
crucial. Future changes in supplier circumstances will be unfavorable for the
Toyota's position. Changes in supplier operations (for example,
financial difficulties, technological requirements of the services) can alter the
outsourcing relationship. However, the risk can be reduced through the
inclusion of the termination clause in contracts. Thirdly, the following are perceived
risks that could be higher or lower in reality. The adhesion effects of the
outsourcing leans towards success stories, while in reality, the
outsourcing is problematic and fraught with conflicts.
In summary, Toyota's motivation is always inclined towards reducing costs and strengthening
the competitive advantage through quality improvement. Even though they have the power
to decide whether to outsource or not and what specific functions are necessary to be
outsourced, it is possible that in addition to thinking of better ways to outsource without
jeopardize the company's reputation. However, the last statement is well
understood by Toyota, as a pioneering company outsourcing through its model of
lean manufacturing business.
Outsourcing is focused on reducing costs, although there are additional advantages such as
we
Risk pooling
Reduce capital investment
Focus on the base capacity
Greater flexibility

We must differentiate between integration (knowledge dependency) and outsourcing.


(dependence on capacity). In both cases, there is an external supplier to produce for
the client. The difference lies in having deep knowledge of the product and the
know-how of the process. The client can transfer the technology to their supplier, but it is not
easy to convey the experience.

We find it obvious to integrate a radio. It seems logical to subcontract production.


of the auxiliary components. But Toyota has subcontracted not only the production of
low-value components, the main subsystems, as well as the transmissions,
and even the design and production of the vehicle's electronic systems. We realize
Outsourcing is an effective business operation to maximize
part of an activity. But this should be limited to low-value components.
(scale of productive value) with a lower impact on the quality of the final product
(functional scale).

Most of the failures detected at the point recalled the Toyota vehicles to the
subcontracted components. Specialists have found defective brakes with
leaks, fuel pumps, the quality of raw materials and the modifications of
design of the accelerator pedal. Obviously, subcontractors like the quota of
Chicago Telephone Supply Co Toyota with the same goals: high profits and the
costs.

Toyota must review:


Outsourcing extremist politics:
Only 30% of the car components are original. Last-minute problems should be addressed.
help to identify Toyota (the very concept of waste from the Kaizen TPS methodology)
that the processes are adding value to the product.
Process improvements are primarily driven directly from the process itself.
Just-in-time The Toyota method applied to its suppliers becomes just to
time. Therefore, almost all efforts are dedicated to activities
productive. R&D and Quality require scale.

Most of the failures detected at the point reminded of the Toyota vehicles to the
subcontracted components. Specialists have found defective brakes with
leaks, fuel pumps, the quality of raw materials and the modifications of
design of the accelerator pedal. Obviously, subcontractors like the fee of
Chicago Telephone Supply Co Toyota with the same goals: high profits and the
costs.

Toyota must review:


Outsourcing extremist politics:
Only 30% of the car's components are original. Last minute problems should
help identify Toyota (the very concept of waste from the Kaizen TPS methodology)
that the processes are adding value to the product.
Process improvements are mainly driven directly from the process itself.
Just-in-time The Toyota method applied to its suppliers becomes just in time
time. Therefore, almost all efforts are devoted to activities
Productive. R&D and Quality require resources and time.
Quality assurance systems and procedures.
Risk analysis.

But first, Toyota should focus all efforts on regaining trust.


of the consumer and its corporate brand image.

Nissan

Regarding the decision to outsource, many factors were considered in the case of
Nissan. Ann Moynihan in her article in Albany Business states criticism 'Outsourcing
can help you.

Reduce and control operating costs.


• The staff free to focus on their core business.

Access specialized knowledge and technologies.

Introduce positive changes.

Obtain control over a difficult-to-manage function resulting from the burdens of


unequal work, the resources are insufficient or unqualified.

At Nissan, in 1999, this was exactly what we were looking for. To focus the
efforts of the staff, the introduction of a positive change and livestock control in
all critical areas led to the outsourcing decision.

The choice of IBM as a partner for Nissan was a strategic outsourcing. At the end of
In the 1990s, there weren't many outsourcing companies that had the breadth or the
the global reach that IBM had. Competitors like EDS and CSC were not considered because
they were only subcontractors and could not offer the hardware and software technology
What Nissan needs to update its infrastructure [5]. If one of the competitors
they were selected through IBM as Nissan's partner would still have faced the
infrastructure problems themselves. IBM was the logical partner.

The way any global outsourcing company makes its money is through achievement.
of economies of scale. The only way to achieve these economies of scale is to
ensure that the best hardware, software, and infrastructure is implemented
and making teamwork for maximum efficiency. By taking advantage of this
best-of-breed technology, Nissan met its declared second and third objectives.

VW

Volkswagen de Mexico and Toyota, among others, are betting on the use of outsourcing to
reduce costs and streamline processes in areas of personnel management, logistics, systems,
production, dining room and cleaning.

For example, Volkswagen has over 11 thousand unionized workers, but just as many
in the outsourcing scheme, reveals a source.

Cementos Mexicanos has personnel under that scheme, adds an executive of the
company, as a measure to streamline costs and allocate human resources
financial to other areas of the business.

It recognizes that there is abuse of outsourcing services and to prevent it, the firm does not pay.
the billing of the month if it is not verified that the employees are registered in the
IMSS and demands respect for the rights of workers in general.
A study by the international consulting firm KPMG confirms that senior management of the
companies in Mexico are increasingly leaning towards hiring outsourcing services to
perform work in various areas.

It is noteworthy that in a poll of 200 company CEOs, 70% expressed


willingness to spend on these services.

In fact, the document reveals that the firms would be ready to invest 3.4% of their
income for this weekend.

Companies are looking to reduce costs as well as maximize those activities


in which they are not experts, leaving others that are not strategic to their
business," details KPMG.

This increase in outsourcing, he adds, is derived from a specific request from the
shareholders of companies, who demand the implementation of business practices
cost-effective, improving productivity and profitability.

Some of the main outsourcing tasks include: recruitment and the


staff recruitment, payroll management, accounting, systems and technology,
distribution and logistics, production, cafeteria and cleaning.

KPMG analysts acknowledge that the questions regarding this service


they will continue, but as competition increases, their hiring will become more and more
more frequent.

For some, the use of outsourcing by companies is a legal practice and the
The argument for reducing costs is valid.

Arturo Alcalde, labor lawyer, assured that companies are betting on outsourcing.
to evade the payment of taxes, particularly the PTU.

Workers' rights

If an employee is a victim of an outsourcing company, they have the right to sue it.
as well as to the company that was provided the personnel management service.

The company contracting the outsourcing services is jointly responsible for


fulfill the labor rights of workers.

If an employee has continuity in their temporary work, they can sue to have it in
in the case of compensation, all the time worked shall be considered.

They abuse the employees

Irregular outsourcing companies are distinguished because:

They do not cover the social security benefits established by the Law, such as
minimum.
They avoid registering personnel with Social Security and delivering SAR contributions.
Infonavit.
They do not give the worker an employment contract.
Tax evasion.
They disassociate themselves from any labor or legal contingencies.
They are delaying the payroll payment.
They lack financial and moral solidity.
They request the resignation of the employee in advance.

CHRYSLEY

At that moment, Chrysler Chief Information Officer Jan Bertsch promised to "keep
[the employees] informed of the results of our efforts." Well, now the
Detroit Free Press tells the rest of us what some of those 'results' are:
The people bid farewell. Everyone knew it was the plan, but now it has happened.
Chrysler is the outsourcing of its 200 full-time employees, a 20 percent
of your IT workforce. Mrs. Bertsch explains: "we thought that a year ago instead
by trying to cost-cut continuously over time, we wanted to take a step
look back at our business and say, 'Where does it really need to go to serve
our clients better? "Without over-analyzing that little penetration in the paradigm of
Chrysler management, which means that it recently signed a contract with Tata and
Computer Sciences Corp will eliminate the need for the central unit of the house and
information technology services. There is no information on how much the savings are.
Chrysler, but Mrs. Bertsch assures us that "they have never embarked on this scale.
of a project that had not been the substantial savings." Don't worry, though. "There
people who will stay, some people leave some people and will be interviewed with
the new supplier and maybe he was offered a position with them," purrs the "Chief (Orwell)
Information Officer.

GM

Today, around 90% of GM IT services are in the execution of data centers.


for writing applications, they are provided by outsourcing companies like HP /
EDS, IBM, Capgemini, and Wipro, and only 10% are done by GM employees.
Many plans to invest those percentages in about three years - for GM 90% of the staff,
10% subcontractors.

Insourcing IT on that scale will require GM to go on a hiring spree for the


software developers, project managers, database experts, analysts
business and other IT professionals in the next three years. As part of that
effort, which plans to create three new software development centers, all of them in
the U.S. subcontractors, including a single-source captive supplier of GM, EDS,
they face the loss of contracts worth up to US $3 billion once
year.

This dramatic movement away from outsourcing is just a piece of the


IT transformation Mott is a leader, which includes the consolidation of data centers and
IT applications centralize planning and execution, and achieve greater control
about GM customers and production data. IT GM transformation does not emphasize
in budget cuts, but the centers instead of delivering greater value of
the information, much faster. In many ways, the foundation is putting Mott
It is similar to Ford's, which began to implement four or five years as part of its One.
Ford / An IT initiative.

The reform foresees Mott puts GM's daily operations at risk during a time.
In which the world No. 2 automobile manufacturer (Toyota is now No. 1) continues
emerging from bankruptcy and the $50 billion government bailout. GM factories,
supply chains, and the financial statements are based on the IT organization to
maintain the flow of information almost in real time on a global scale. The fact that the
Mott's boss, CEO Dan Akerson, would bless this level of IT change and accept this
risk level in an still fragile stage of GM's recovery shows the essential of
The best data and technology are the future of the company.

Akerson was looking to make changes to the speed and cadence of the
company," says Mott. "He was already with me or someone else, Dan Akerson was going to do a
IT transformation here.

Mott's philosophy on GM's outsourcing, as it was with HP, Dell, and Wal-Mart, is that
the company needs more creatives, business ideas in IT are changing, and the teams of
They need you to deliver innovative projects faster. Mott doesn’t believe that
GM can be creative or fast enough with outsourced IT. 'When the
the company says 'go', then that means to start working on a contract, right?
"We started working on a project," says Mott about the current outsourced model.
He is on the editorial advisory board of InformationWeek and was appointed our Head of
Year in 1997, when I was at Wal-Mart.

The abandonment of outsourcing is just the most dramatic element of TI Mott.


transformation. The plan, approved by Akerson and the rest of the executive committee of
functioning comes directly from Mott's playbook that has been developed over time
of a three-decade career in the retail, high-tech, automotive industry
And now. Mott's plan for GM is almost identical to the one he implemented at HP between 2005 and 2008 under
CEO Mark Hurd, before Hurd and Mott, I bounced back in a restructuring executive.
GM now outsources 90 percent of its IT services and provides the remaining 10 percent.
one hundred of those who work in the company. Within the next three to five years, GM
wait to reverse those percentages, in part, by hiring 'thousands' of
software developers, experts in new databases and others worldwide,
GM spokesperson, Juli Huston-Rough, said.

The IT review is led by GM Chief Information Officer Mott Randy.


who presented the plan to 1,500 GM IT employees in June. Mott, former Hewlett-Packard
Which executive (HPQ.N) believes that the moves will make the largest manufacturer of
more efficient U.S. automobiles, and ultimately, more productive. Some
Elements of the review will require five years to apply.

If one is more efficient and can go through the process faster, having more time
and more resources that are sought in the innovations that provide an advantage
competitive for the company," said Huston-Rough.

GM plans to cut back on the expansion list of the automotive software applications market.
less than 40 percent and move to a more standardized platform. GM also
it will simplify the way to transmit the data.

A GM spokesperson declined to comment on how much the planned relocation


it would cost or in the savings from general costs that may result. The details of the transfer
It was previously reported by Information Week magazine.

The car manufacturer will reduce from 23 data centers around the world to just two,
both in Michigan. The company will also operate four development centers.
software, including a pre-existing one in Warren, Michigan.

Mott will also require employees to provide a cost-benefit analysis of the


new IT projects and plans to expand recruitment efforts and
hire new university graduates.

The movements to reverse what has been a long-term trend for the manufacturer.
from U.S. automobiles, which accepted a government bailout in 2009 and declared bankruptcy
bankruptcy.

In July 2010, GM signed a multi-year contract with information technology.


former employer Mott, HP, which was worth over $2 billion, the renewal of a
existing contract one year prior.

HP then said it would provide services such as network maintenance, development


of software products and supply chain management. HP provided much of
from that work through a former GM unit, Electronic Data Systems, which HP
bought in 2008 for around $13.9 billion.

GM bought EDS from former presidential candidate Ross Perot in 1984 for $2.55 billion.
millions, transferring a large part of their IT operations so that companies, but the
turned off 12 years later.

GM's shares fell 2.9 percent to $19.32 on Thursday afternoon.


New York Stock Exchange
FORD

Giant motor Ford has outsourced its payroll and service time and assistance.

The billionaire, five-year contract to use a new time and a system of


Corona IT assistance carried out in collaboration with Lógica, with the services
scheduled to move in 2010.

Ford will use RTIS logic insurance hosting environment (Real-Time Services)
Infrastructure), for the delivery of Oracle-based software, which uses a pay-as-you-
go model that eliminates the traditional fee, upfront software license. The system
Oracle payroll will be integrated with the existing Ford PeopleSoft HR application.

Ford expects cost savings and greater efficiency through increased


automation across the company, with its payroll personnel focusing less on the
administration and more in value-added activities.

Ford's relationship with Logic extends over 20 years, and the new service contract
the relationship will be extended to 2014.

Of the three major automobile manufacturers in the U.S. - Ford, Chrysler, and GM - they are
subject to criticism for outsourcing to Mexico. GM and Chrysler have received billions.
in assistance from the U.S. government to keep them operational during the
economic recession. Now, Washington criticizes automobile manufacturers for
the offshoring of jobs in manufacturing as a sign of taking undue advantage
of the North American Free Trade Agreement.

There has been a lot of controversy about outsourcing after President Obama
he has taken office. Although it was mentioned that he would support the policies
commercial relations with favored nations such as India before its election, that the
rhetoric has soon become a high point of subcontracting, the same nations in
the receiving end, like India. In a Union State, the President said he was going to
revoke tax exemptions for outsourcing companies. Now the senator
Schumer has proposed a bill on closing tax loopholes.
outsourcing multinational companies jobs in the United States. By the way, the bill project
approved in the House of Representatives and is now pending approval in the
Senate. The resounding echo of the administration has to maintain jobs in
the U.S. due to the high unemployment rate as a global recovery that
is expected on the horizon.

American automakers have been decorated with help in the form of


of $80 billion amid the economic recession that has shaken the markets
financial and in the credit crisis. Skeptics say they are leaving the
American taxpayers in the dust and turning to cheap labor in the south,
which has left many with a strong sense of discontent among the three grandes.
Although Ford has not received financial assistance, Ford is another company that is
subcontracting to Mexico and is included in the list of companies that turn their backs on
America.

Reports cite that Mexican automotive workers tend to make only ten
percent of what a U.S. automobile manufacturer takes home. In
as a consequence, a GM employee on the assembly line could do something like 62
dollars per hour, while the employee in a car factory in Mexico
it makes around $4/hour. By the way, these figures are still the benefits for the
employee. This seems to be perplexing for many figures and the number includes
benefits. However, the automobile manufacturer in Detroit or in other parts of the
The salary of the American automotive worker is determined according to
the Politif act as stated in an online report by economyincrisis.org.

According to analysts, NAFTA has been the driving force behind the creation of offshoring.
nearby, or the outsourcing to nearby places. This strategy leaves the company with
the option to frequently check with your provider as a destination of
outsourcing is close to the US - in this case Mexico. As there are very few
obstacles to trade, in their case, with foreign companies, the companies
Americans have the Herculean task of competing alongside the business in the
foreigner. This has led to the outsourcing of a global strategy,
regardless of where the company is based because the workforce
qualified and talented work has to come cheap - this means that outsourcing to
India, Mexico, the Philippines, and China. With outsourcing, foreign companies have
they were capable of lower strategic costs - both in terms of operations and the
efficiency. Most of the time, the available infrastructure in other countries is
nonexistent in the U.S. and that is why it makes sense to send jobs abroad
to specialized places where the infrastructure already exists.

Therefore, the search for cheap labor abroad is the name of the game.
so that American companies can compete with their international rivals.
In addition, with tax cuts from the U.S. government and other forms of
incentives to produce foreign cars within the U.S., there is more pressure on
the Big Three. In turn, this reduces the power of the U.S. automobile manufacturer.
to be a competitive global player.

Due to political pressure, car companies in the U.S. have been reluctant
to move to other markets like Mexico. Analysts say that manufacturers of
these cars will be in a way to make independent decisions once that
they have paid their loans to the American government. Citing examples, General Motors has
closed eight plants in 2005. In addition, GM has detailed the plans for
reorganization that includes the layoff of 22,500 employees in the U.S. Also
includes formwork for 13 floors. At the same time, GM continues with its production in
more affordable terms by opening a Mexican production plant that
included $3.67 billion in investments. If the company is likely to increase the
production, jobs are likely to come from Mexico and not from the U.S.

NISSAN

Philosophy

We ensure that our customers are enthusiastic by anticipating their needs and
by providing them with products and services that reflect the imaginative fusion of the best technology and
the best design

Nissan's environmental philosophy "Symbiosis of People, Vehicles and Nature" was adopted in 1992, and
Since then, we have acted proactively in all aspects of our operations to make it
reality.

Mission

Provide unique and innovative automotive products and services that offer measurable values and
superior, in alliance with Renault, to all our creditors*.

Vision

Enriching people's lives.

Values

The brand promise: As Nissan, we will be reflectively bold and we will establish our
own standards.
The brand symbol: It represents the Nissan brand to promote products, sales and
services.
The Nissan Brand Symbol is the central element of brand information to our customers.

Extra

Nissan is focused on improving the environment under the Nissan Green environmental program.
2010 program, whose objectives are the reduction of CO2 emissions and the increase of recycling.
Additionally, the ANDANAC/Nissan Foundation manages a Social Assistance Fund for construction.
of public primary schools: in eight years, 63 schools have been built and equipped for the benefit
of more than 30 thousand children from low-income backgrounds in the republic.

Folk's Car

Mission

Our Mission
Excite our customers around the world with innovative, reliable cars.
friendly to the environment, as well as with excellent services, to achieve results
outstanding.

Our Vision

We are a successful company that generates profits sustainably.

We are leaders in the Mexican market, successfully satisfying and retaining customers by offering
an excellent service

We are competitive and reliable in the development and production of vehicles.


components

We are an attractive business partner for suppliers and dealers, establishing with
they sustainable relationships

We are a team of competent, committed, and satisfied collaborators.

We have innovative, reliable, and transparent processes focused on quality.


excellent and the satisfaction of our customers.

Our Principles

Focus on the continuous improvement of our processes

Meet the national, international, and Volkswagen Group requirements regarding


of:

Quality in products and services, prevention of environmental pollution, safety and health
labor

Promote a mindset of excellence among all our collaborators and business partners

Our Values

Closeness to the Customer

High Performance

Create Values

Renewal Capacity

Respect

Responsibility

Sustainable Development
CHRYSLER

Philosophy

Chrysler of Mexico has been implementing the philosophy of World Class Manufacturing (WCM), a
production methodology designed to reduce waste and increase productivity in all
plants since 2009.

I feel sorry for the person who cannot feel excited about their work. They will never be
satisfied, but will never achieve anything worthwhile.

GENERAL MOTORS

Vision
Design, build and sell the best vehicles in the world.

Mission

Fully satisfy our customers through excellent service


customizedand to beleaders in automotive sales, service, and parts

Values
The fundamental values are the pillars upon which our company is based, they are
shared by all members of the organization and aimed at providing the best
to each of our clients. They are:

Customer enthusiasm.
Continuous improvement.

Integrity.
Teamwork.
Innovation.
Respect and responsibility
TOYOTA

Mission

To offer our customers automobiles from the prestigious brand Toyota. Based on a
quality delivery, after-sales follow-up, and quality service at appropriate prices, for the
satisfy the customer's needs with technological and quality support, achieving
the same time a return for our shareholders.

Vision

We have leaders in each of our positions for the full satisfaction of our
clients. We are a service-focused company, which is why we constantly innovate to
exceed the established standards. Our vision is long-term, as the relationship with
our clients do not end with the sale of a car, just at that moment it is
when it begins

Philosophy

Toyota, a global symbol of automotive quality.


Toyota, the most respected automotive company in the world.
Toyota, leader in customer satisfaction.
Toyota is the number 1 automotive company in the world.
Toyota, zero defects in the manufacturing of its automobiles.
Toyota, there is a way, to be the best.
Kaizen philosophy, continuous improvement involving all areas.

Values

Honesty: We act with righteousness and integrity, maintaining fair treatment for all.
our counterparts.
Loyalty: We are part of the 'Toyota Family', conducting ourselves according to the values and
business objectives of the organization.
Respect: We always maintain due consideration for human dignity and its
environment.
• Responsibility: We fulfill our duty by adopting the policies and provisions of
the company.
• Trust: We perform with accuracy, punctuality, and fidelity to strengthen our
environment.

FORD

Ford Motor Company is one of the most important manufacturing companies in the world,
both in capital and in personnel and productive capacity.

Mission

Ford Motor Company is a global leader in automotive and financial products and services.
Our mission is to continuously improve our products and services in order to satisfy
the needs of our customers, which allows us to thrive as a business and
provide reasonable returns to our shareholders who are the owners of our
business.

Vision

A good company offers excellent products and services; a great company, moreover, also
worried about making our world a better place to live.

Values

The way we fulfill our mission is as important as the mission itself.


The following core values are fundamental to the success of the Company.

People - Our people are the source of our strength. They provide our intelligence.
corporate and determine our reputation and vitality. The involvement and work in
team is the essence of our human values.
Products - Our products are the final result of our efforts, and they must be the
better to serve our customers around the world. Just as our products are
seen, this is how we are seen.

•Utilities - Utilities are the final measure of how efficient we are in providing to our
clients with the best products to meet their needs. The profits are
necessary to survive and grow.

Dealers and suppliers are our partners - The company must maintain
mutually beneficial relationships with distributors, suppliers, and our other partners
commercials.

Integrity is never compromised - The conduct of our company around the world
it must be followed in a way that is socially responsible, requiring respect for its
integrity and for their positive contributions to society. Our doors are open
for men and women in the same way without discrimination and without considering ethnic origin or
personal beliefs.

Guiding Principles

Quality comes first - To achieve the satisfaction of our customers, quality of


our products and services must be our number one priority.

Customers are the center of everything we do - Our work must be done


thinking about our customers, providing better products and services than our
competition.

Continuous improvement is essential for our success - We must strive for it.
excellence in everything we do: in our products, in their safety and value, and in
our services, our human relationships, our competitiveness and our
profitability.

Staff involvement is our way of life - We are a team. We must


treating each other with trust and respect

Requirements of Different Automotive Companies in Mexico

The process that automotive companies in Mexico have adopted for employee selection
of the same, in recent years it has become more rigorous year after year, factors such as the
motivation, proactivity, leadership, the ability to carry out a project in a team of
work are competencies that the company has chosen to consider for selecting its
employees.
Thanks to modern technology, the process can begin to be carried out via the internet through the
portal of each of the companies. The selection process is carried out as follows.

Application

A personal data form is filled out, including skills and abilities as well as academic data.
work-related, via the internet. It is mentioned that both motivation and interest are factors that are
they consider

Online Tests

Intelligence, personality, and language tests are applied to classify the results.

Online Evaluation

The information you present in your CV will be evaluated. In addition, the quality, creativity,
presentation and resolution of the case.

In-Person Dynamics

All candidates who passed the filters are gathered for evaluation dynamics.
group

Interview

Each of the candidates who had favorable results in the dynamics is interviewed.
The purpose is to understand the interest and motivation for VW.

Assessment Center

The competencies that the candidate has developed are evaluated through role plays.

They place a strong emphasis on the use of the language at an advanced level in both English and German, and even
Some people mention in different blogs that engineers require the use of vocabulary.
technician in said languages.

Most automotive companies in Mexico have adopted this selection system.


personal and not just for the engineering area.

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