Home Page Case Studies HR & Talent Acquisition International Expansion Outsourcing From Japan to North America: Strategic Automotive Manufacturing – HR Setup & Recruitment Outsourcing
HR International Expansion Recruitment Specialist Outsourcing

From Japan to North America:
Strategic Automotive Manufacturing
‑ HR Setup & Recruitment Outsourcing

The case study highlights PRODENSA’s expertise in providing comprehensive HR setup and recruitment outsourcing services in the automotive industry. By taking full ownership of the HR process, offering multicultural expertise, and ensuring compliance with local regulations, PRODENSA enabled the successful launch and sustained growth of a strategic automotive facility of Asian company in North America.

Table of contents

Overview

In 2012, a leading Japanese automotive manufacturer decided to establish a new production facility in Mexico as part of their Structural Reform Plan. This plant, the company’s only North American assembly site, was intended to become their most important global strategic base. It also marked the first time the CLIENT set up an overseas factory independently, without an automotive partner. To ensure the successful launch and operation of this facility, the CLIENT engaged PRODENSA to provide comprehensive HR setup and Recruitment Process Outsourcing (RPO), a partnership that has now spanned 12 years and continues to thrive.

Project Stages

Needs Assessment

The project began with a thorough needs assessment to identify the specific HR requirements for the new facility. PRODENSA analyzed the CLIENT’s business objectives, assessed the local labor market, and identified cultural and legal differences that could impact HR practices. This stage was crucial in understanding the challenges and opportunities associated with setting up operations in Mexico.

HR Strategy Development

Based on the needs assessment, PRODENSA developed an HR strategy aligned with the CLIENT’s business goals while considering local labor market conditions and cultural factors. This strategy encompassed recruitment, retention, compensation, and benefits, ensuring that the CLIENT could attract and retain top talent in the región.

Implementation

PRODENSA took full ownership of the HR function for the new facility, deploying a team of around 50 professionals to execute the project. This included recruiting and training over 7,000 new employees, establishing HR policies and procedures, and ensuring compliance with local labor laws and regulations. PRODENSA effectively became the CLIENT’s HR department, focusing primarily on the high‑volume recruitment of new staff.

Monitoring & Evaluation

Throughout the project, PRODENSA monitored and evaluated the effectiveness of the HR strategy in achieving the CLIENT’s business objectives. This involved collecting feedback from employees, tracking HR metrics such as turnover rates and employee engagement, and making necessary adjustments to the strategy to ensure continuous improvement.

Challenges & Solutions

  • Understanding Local Labor Laws & Regulations: The complexity of Mexican labor laws, particularly concerning hiring, termination, compensation, and benefits, posed a significant challenge.
  • Solution: PRODENSA provided legal expertise and HR consulting, ensuring full compliance with local regulations.
  • Language & Cultural Differences: The cultural gap between the Japanese management team and the local Mexican workforce required careful navigation.
  • Solution: PRODENSA’s multicultural team bridged this gap, facilitating effective communication and cultural integration.
  • Recruitment & Retention: The need to hire and retain a large number of employees in a competitive labor market was a major challenge.
  • Solution: PRODENSA developed a scalable and flexible high‑volume recruitment strategy that streamlined the hiring process, improved the quality of hires, and enhanced employee retention.
  • Integration of New Employees: Ensuring that new hires were effectively integrated into the company culture was crucial for long‑term success. 
  • Solution: PRODENSA implemented comprehensive onboarding and training programs to align new employees with the company’s values and operational standards.

Project Outcome

The collaboration between PRODENSA and the CLIENT resulted in the successful establishment and operation of the new automotive facility in Mexico. Since the project’s inception, PRODENSA has facilitated the hiring of around 15,000 employees, contributing to the CLIENT’s position as a key player in the North American automotive market. The RPO and HR consulting services provided by PRODENSA offered the CLIENT a flexible, scalable, and efficient recruitment solution that significantly reduced costs and improved hiring outcomes.