Iochpe-Maxion and the introduction of outsourcing

Globalization: the term was a novelty back in the early 1990s. With the opening up of the Brazilian automotive market (hitherto stringently regulated) to international competition, Brazil’s automakers had to restructure their production methods. With outmoded processes and technology, they looked to outsource production lines previously managed internally. Since 1994, when the Real Plan stabilized the currency and contained rampant inflation, foreign carmakers set up factories in Brazil and new players were drawn to the country’s burgeoning market, further dynamizing the sector and making outsourcing essential to reducing costs and producing higher-quality automobiles.        

Iochpe-Maxion was one of the first to adopt outsourcing, becoming as a result a genuinely systemist company supplying structural components to all the leading automakers. After the acquisition of FNV, in 1990, the company invested heavily in improved quality and automation at its Cruzeiro plant, where it introduced e-coating and powder-coating processes. The company was now not only stamping side rails, but producing whole undercarriages.     

As a result, in 1994, Iochpe-Maxion became a certified supplier to Auto Latina (a joint venture between Ford and Volkswagen that lasted from 1987 to 1996), manufacturing chassis for VW’s light trucks and for the Ford F-1000. Not long afterwards, Iochpe-Maxion also began supplying chassis and side rails for GM’s Chevrolet S-10. The company received numerous awards for its excellent levels of quality and near-zero flaws, making Maxion a leading player in the segment.  

Today, Maxion Structural Components supplies high-quality side rails and chassis for commercial and light vehicles by leading automakers in Argentina, Brazil and Mexico. It has a staff of over seven thousand across eight plants in four countries.