Today, Premium Sound Solutions (PSS) is a leading global pioneer in audio technology and sound innovation. The Belgian company produces over 80 million speakers per year, with a who’s who customer list including BMW, Ford, General Motors, Tesla, Toyota and Volkswagen. In 2009, PSS faced a critical turning point when BMW mandated that all tier-one suppliers would need to have manufacturing operations within the North American Free Trade Agreement region to supply to its production facility in South Carolina. At the time, PSS had production and development in Europe, China and India but not in North America. The company had a decision to make if it wanted to retain BMW’s business. Faced with the choice of establishing operations in the US or entering an entirely new market, PSS made the bold decision to set up its first-ever production facility in Mexico—a country where it had no prior presence, experience, or personnel. This decision became a long-term strategic advantage, giving PSS a truly global production footprint. Partnering with Entrada Group, PSS experienced 13 years of growth in Mexico, acquiring new OEM customers, enhancing vertical integration, and building advanced engineering and production capabilities—all supporting its ambition to be “the sustainable sound systems partner of choice” worldwide. 

The Evolution of An Expansion to Mexico

Once PSS settled on a Mexico production location, the company would face the daunting task of navigating Mexico's complex regulatory landscape, including import/export to/from the US, trade compliance, and labor and payroll. Entrada Group's expertise proved invaluable. Leveraging a dedicated 200-person Mexico support team with extensive knowledge of export-driven manufacturing, Entrada facilitated a smooth and rapid setup, enabling PSS to focus on its core competencies rather than getting bogged down in administrative hurdles.

“Entrada helped us a lot through the first three to five years, which are the most challenging when adapting to a new country. Over time, when we grew and gained experience, we got to a much closer, true partnership from both sides, where both can rely on each other.”

- Stijn Goeminne, CEO, Premium Sound Solutions

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By taking advantage of Entrada’s existing manufacturing support platform – including infrastructure, labor pool, reputation in the community, trade certifications, compliance know-how – PSS was able to meet BMW’s request for a presence in North America quickly, without bearing excessive risk alone. Additionally, Entrada’s support enabled PSS to benefit from VAT exemptions on temporarily imported production elements— such as machinery, components, and parts—and secure faster refunds for VAT payments on imports and operational expenses. This coveted AAA certification, which would typically take PSS years to obtain independently, was achieved far more efficiently through Entrada.

Meeting Customer Needs

From there, the PSS’ operation in Mexico flourished, demonstrating the success of the strategic partnership with Entrada (see table “Headcount Growth”). That growth has been driven by the company’s unique ability to respond to significant market changes in the auto industry, which PSS was able to do thanks to its presence at Entrada’s Mexico manufacturing campus. Over the years, Entrada enabled PSS’s steady growth in Mexico, regularly responding to the company’s need for more space and a larger workforce.

Volkswagen

In 2012, Volkswagen Mexico required the presence of local suppliers, to meet the growing demand for automotive components in the country, similar to the earlier request from BMW. PSS had proven its worth with one German OEM, why not add a second? To win the Volkswagen business, however, would require the development of a new program for domestic invoicing. Volkswagen would require domestic invoicing so it could generate tax revenues that are highly prized by the government in Mexico, which would yield benefits for the OEM down the road. 

Once again, Entrada Group's expertise came into play. Entrada worked hand in hand with PSS to develop a local invoicing program that met Volkswagen’s approval and enabled PSS to win the business.

Audi

In 2016, PSS’s Mexico manufacturing capability again proved beneficial when Audi began producing the Q5 in Puebla. Audi’s stringent requirements for achieving 92% value-added production in Mexico highlighted PSS’s critical role in the regional supply chain. In addition, by sourcing components locally, Audi could save approximately $4,000 per vehicle compared to importing from China, showcasing the tangible benefits of PSS’s strategic presence in Mexico. Automotive players are global customers, so Mexico’s globality was key when deciding where to set up shop.

BMW

Another pivotal change came that same year, when BMW requested a more consistent adhesive application process for audio components in its vehicles. Again, PSS adapted quickly and worked with Entrada to introduce its first robotics cell outside of China. Unlike in the United States, where robotics are often implemented to address labor shortages, PSS’s adoption of robotics in Mexico was a strategic decision aimed at enhancing production quality and consistency.

Mexico Offers Resilience

PSS’s experience during Covid was different from that of many manufacturers. When the pandemic hit, Mexico’s federal government quickly declared the auto sector a “critical industry,” leaving it to the states to determine proper guidelines in manufacturing facilities (personal protective equipment, distancing guidelines, testing protocols, etc.) Manufacturing resumed in Mexico’s auto sector much more quickly than it did in other nations (China remained shutdown for over a year longer, for example).

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At the state level in Zacatecas, Entrada leveraged its longstanding relationship and status as a key employer to persuade policymakers to keep operations up and running without delay. Entrada’s Environmental Health & Safety team worked proactively with PSS to develop a plan that would enable production to continue and also prevent the spread of Covid. Zacatecas officials approved the mitigation plan in just one day to keep plants open, including temporarily suspending some labor laws, providing greater flexibility on employee working hours and conditions (without sacrificing worker safety), and temporarily suspending mandatory severance payouts for workers who had to be sent home. 

Despite the obstacles that came with COVID, and before, there hasn’t been one time that PSS was unable to deliver to a client. With the help of Entrada, PSS has been able to create a nearly unmatched reputation for reliability.

“In the automotive industry, time to market is extremely short,” says Stijn Goeminne. “It’s crucial to keep the production lines running because any stoppage comes at a significant cost. This focus has become even more pronounced compared to ten years ago. Additionally, our US customers now place greater importance on local content and de-risking. They need absolute certainty about a stable and reliable supply chain.”

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PSS Expands Capabilities

As PSS continued to grow, the company made significant strides toward vertical integration, starting with one of the most critical components: plastics. “We had to focus on plastics first because it’s such a major element of the speakers,” said Stijn Goeminne. “That expertise is being added in-house in Mexico as we speak,” with dedicated automation engineers driving plastics production advancements locally. 

“We’re ramping up expertise in different regions to ensure we have the right knowledge in automation, tooling, and other areas we previously lacked,” Goeminne added. 

PSS’s new 30,000 sq. ft. plastics facility highlights the company’s confidence in both Mexico and its partnership with Entrada. This expansion not only improves operational efficiency but also increases local content, further enhancing PSS’s appeal to new OEM clients.

A Testament to Strategic Partnerships

Today, PSS's Mexican operations are a cornerstone of its global business, producing thousands of high-quality speakers daily for major automotive brands, including Tesla, BMW and Audi. The journey from a small team of 34 employees to a robust workforce of over 800, is a testament to the strong partnership between PSS and Entrada Group. 

“PSS always looks for a win-win; that is what we call a true partnership,” says PSS CEO Stijn Goeminne. 

The collaboration between PSS and Entrada Group continues to thrive, paving the way for future innovations and successes.

Timeline PSS: A Global Growth Story 

We Help Manufacturers Grow

About Entrada Group

Entrada Group guides international auto sector manufacturers in establishing and running their own cost-competitive Mexico operations. Our plug-and-play manufacturing support platform enables our clients to shortcut to the benefits of Mexico without their own legal entity there.

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