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AUTOMOTIVE OEM ESTABLISHES FACTORY IN MEXICO

PROJECT
Market analysis & workforce support in starting up a manufacturing factory in Mexico
WHAT WE DID
Provided a custom market intelligence benchmark report and supported their HR setup and recruitment strategies.
CLIENT
An Automotive OEM from Asia with and interest to sell to the local Mexican market as well as export autos.

PROJECT INFORMATION

The case study demonstrates PRODENSA’s unique capability to deliver comprehensive Market Intelligence and Recruitment services in complex, multicultural environments. By providing tailored solutions that addressed the client’s specific challenges—such as remote location and cultural differences—PRODENSA enabled the successful establishment of a major automotive manufacturing operation in Mexico.

The client, a leading automotive manufacturer from South Korea, sought to establish new production facilities in Mexico to support the production of their latest models for the North American market. Given the remote location of the new facilities, the client faced significant challenges in understanding the local labor market and implementing an effective recruitment strategy. To address these challenges, the client engaged PRODENSA to provide comprehensive Market Intelligence, HR setup, and Recruitment, a partnership that has now spanned 10 years and is ongoing.

PROJECT STAGES

Client Needs Analysis PRODENSA began by conducting a thorough analysis of the client’s needs, focusing on the unique challenges of establishing a manufacturing operation. This stage involved identifying the specific HR and recruitment challenges that could arise, given the cultural differences and the remote nature of the site.
Creation & Presentation of Labor Market Report Based on the needs analysis, PRODENSA developed an in-depth labor market report that provided detailed insights into the local labor market conditions, wage expectations, and recruitment possibilities. This report served as the foundation for the client’s HR and recruitment strategy.
Supporting the Client in Defining Salaries & Benefits Packages PRODENSA worked closely with the client to define competitive salary structures and benefits packages tailored to the local market. This included recommendations on transportation routes to facilitate the hiring of employees from across the region, addressing the challenges posed by the remote location of the facilities.
ASSIGNMENT OF PRODENSA STAFF TO CLIENT'S FACILITIES To provide ongoing support, PRODENSA assigned experienced HR professionals to work directly within the client’s facilities. This on-site support ensured that the client had immediate access to expertise in HR activities and market conditions.
DEFINITION OF RECRUITMENT MASTER PLAN PRODENSA developed a comprehensive recruitment master plan that outlined the strategies and timelines for hiring the necessary workforce, including both technicians and engineers. This plan was designed to be flexible, allowing for adjustments based on peak recruitment seasons.
RECRUITMENT KICK-OFF With the master plan in place, PRODENSA led the recruitment efforts, successfully launching the hiring process and meeting the client’s staffing requirements within the defined timelines.

CHALLENGES & SOLUTIONS

  • Remote Location: The remote location of the new production facilities made it difficult to attract local talent.
  • Cultural Mismatch: The cultural differences between the South Korean management team and the local Mexican workforce presented potential barriers to effective communication and collaboration.
  • Transportation Solutions: PRODENSA recommended and helped implement around 70 transportation routes to bring employees from various parts of the region, effectively widening the talent pool.
  • Cultural Integration: PRODENSA facilitated a multicultural approach, helping the South Korean management team understand the Mexican labor market while also helping the Mexican staff adapt to the Korean management style. This cultural bridge was crucial for the project’s success.
  • Flexible and Precise Recommendations: PRODENSA’s flexibility and operational precision allowed for tailored recommendations based on reliable market data, which helped build trust with the client.
Success Story

PROJECT OUTCOME

The collaboration resulted in the successful hiring of over 2,500 technicians and 100 engineers, meeting the client’s recruitment goals according to the master plan. The client gained a precise understanding of the local market and benefited from a flexible, culturally sensitive approach that facilitated effective operations in a new and challenging environment. The multicultural integration and on-site support provided by PRODENSA were key factors in the project’s success.

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