Mexico is emerging as a major North American supplier of key automotive systems, not just individual parts.

Mexico, long considered a supply base for basic parts, is moving toward producing full systems, including brake systems, engine components, suspension systems and transmissions, according to a study by England's SupplierBusiness Ltd.

That shift is expected to gain momentum. "Such a move would entail development of local automotive component suppliers and matching up with international suppliers," the report said.

Mexican auto parts production reached about $30 billion in 2008, the most recent year for which data are available.

ZF Group spokesman Bryan Johnson says Mexico's supply sector is undergoing a natural progression of sophistication from simple component makers to those building larger systems. ZF, of suburban Detroit, generates about $300 million a year from its Mexican suspension and torque converter operations, he says.

 MEXICO MATURES

 Mexican suppliers moved beyond basic parts to these systems.
-- Brake systems
-- Engine components
-- Heating, ventilation and air-conditioning systems
-- Suspensions
-- Safety products
-- Transmissions

Alby Berman, a spokesman for safety system supplier Takata Corp., says Mexico continues to benefit from automaker demands for cheaper component sourcing through reduced inventory levels and just-in-time delivery. Automakers are pushing suppliers to move to China and other lower-cost countries, but Mexico has yet to be fully developed as an auto parts supplier, Berman said.

The country's rapid growth as a parts exporter has allowed a handful of Mexican companies to emerge as suppliers with sales in excess of $500 million annually. They include:

-- Sanluis Rassini Corp. SA de CV, which supplies suspension systems.

-- Metalsa S de RL, which builds chassis frames, suspension modules and fuel systems.

-- Grupo Quimmco SA de CV, which machines aluminum cylinder heads and other parts.

You can reach Robert Sherefkin at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .