As printed in Baja’s paper “La Cronica”

By Carlos Cordova

2008: the strongest crisis in contemporary times was beginning to wreak havoc.

One of the first expenses that consumers cut from their grocery list was everything related to luxury. Under that premise, how could a company that made and sold limousines survive?

Short answer: by lowering its costs.

The first contact happened in May 2008; by then the only thing known about Krystal Enterprises was that:

1. They were leaders in limousine and shuttle bus production.
2. Headquarters was Los Angeles, California.
3. It had 300 employees.

Sector, location, and the number of employees; all checked with the standard profile. Lots of experience in Mexico for the automotive sector; close to home and lots of labor cost to save on.

The company was visited to raise the possibility of moving its operation to Mexico: Reserve. Skepticism. Mistrust.

These words define very well the position that the company expressed when considering the option of manufacturing in Mexico. That same position is fully known and accepted as part of the process of persuading. For many companies, thinking about moving their plant to another country is almost like thinking about changing religion.  It doesn’t happen overnight.   

The second contact came almost 6 months later when the company decided to open the doors to a complete team of professionals including an industrial park, a customs broker, an accountant, and a lawyer, each one an expert in their field, serious about explaining the way to do business in Mexico. This part was key.

At that point (although less so), the owner of the company was still skeptical but, like an hourglass, the financial crisis was deepening. Faced with such an alarming situation, it was worthwhile to thoroughly analyze the possibility of relocating the operation to Mexico, at least exploring the idea would not hurt.

March 2009: First visit to Mexico by the owner.

When the barrier that refrains a prospect from going south of the border has been broken down, that skepticism becomes almost non-existent. Now the dynamic of the City has entered in all its splendor: the companies that are located there, the talent that is related to the processes.

By October 2009, Krystal was a reality in Mexico.  By manufacturing its line of luxury limousines as well as its shuttle buses locally, Krystal reduced its operating costs by 50%. Throughout its history, there were some ups and downs for Krystal’s, such is the case that now its name was changed to Grech Motors.

Carlos Cordova is now Ceo for consulting firm Landing Strategy.

Landing Strategy specializes in helping companies from the US that want to resource, contract manufacture, or sell in Mexico find the best alternatives. For more information go to www.landingstrategy.com or dial from the US (714) 252 6086, call us today for a free consultation.