Aptiv plans to accelerate manufacturing automation to improve efficiency and reduce labor costs.
With 140,000 global employees (30,000 salaried and 110,000 hourly) and 51,000 contingent workers, 50% of the company’s workforce is based in North America, with its largest presence in Mexico.
Aptiv is a global technology leader specializing in enabling autonomous, electrified, and digital mobility. It provides critical sensor-to-cloud software and hardware solutions for the world’s leading OEMs, optimizing the transition to software-defined vehicles through a scalable architecture.
Manufacturing automation
Faced with significant increases in labor costs in regions such as Mexico, resulting from reforms to working hours and minimum wages, the company identified the need to accelerate manufacturing automation to sustain margins and operational efficiency.
The strategy involves the intensive use of robots in manufacturing facilities, along with operational initiatives aimed at improving margins and capturing economies of scale, thereby strengthening the competitiveness of its production operations.
Beyond the automotive sector, Aptiv plans to extend its automation technologies to diversified industrial applications. These include the deployment of robots in manufacturing plants and the use of drones in commercial and defense applications.
In 2025, the company entered into partnerships with ServiceNow, Capgemini, and Robust.AI to market its portfolio of “smart edge” products. In this context, starting in 2026, the “Advanced Security and User Experience” segment will be renamed Intelligent Systems.
Labor costs in Mexico
In 2025, Aptiv reported revenues of $20.398 billion, with year-on-year growth of 3.5%. However, net income fell 90.0% to $181 million, reflecting a challenging financial performance.
The decline in profit was mainly due to a $648 million impairment of goodwill at Wind River, as well as higher tax charges, factors that directly impacted the net result for the year.
At the same time, labor costs in Mexico increased significantly due to minimum wage increases, while possible reforms are on the horizon, including a reduction in the work week. This environment is prompting Aptiv to review jurisdictions and accelerate manufacturing automation.
Aptiv competes with Bosch, Continental, ZF, Denso, and Magna. Competition focuses on electrical architectures, vehicle software, and advanced systems. The environment demands global scale, vertical integration, cost efficiency, and rapid innovation in the face of OEMs under pressure from electrification and automation.