UPS Invests $50 Million to Transform Logistics for North American Automotive and Industrial Manufacturers, Launches Air Freight Expansion in Mexico

Key Terms

less-than-truckload technical

Less-than-truckload (LTL) is a freight shipping method where multiple customers share space on the same truck because each shipment is too small to fill a full truck. Like taking a shared taxi instead of hiring a car for just yourself, LTL can lower shipping costs and improve flexibility but adds handling steps and transit stops, so it matters to investors because it affects companies’ delivery speed, logistics costs, inventory timing and overall profit margins.

Strong cross-border capabilities and fast transit times support production-critical supply chains throughout North America

ATLANTA--(BUSINESS WIRE)-- UPS (NYSE: UPS) today announced it has invested nearly $50 million in network capabilities and dedicated industry teams to help automotive and industrial manufacturers operate with greater resilience and precision. As supply chains face ongoing pressure from automation, geopolitical shifts and evolving regulatory demands, UPS is uniquely positioned to help customers navigate complexity through its end-to-end global network, advanced technology and deep industry expertise.

Building on this, UPS announced the expansion of its North American Air Freight (NAAF) capabilities – introducing time-definite heavy air freight service to and from Mexico for the first time and extending coverage across North America to better support production-critical supply chains. Unlike fragmented, multi-carrier models, UPS integrates transportation, brokerage and warehousing into a single solution, reducing handoffs and simplifying cross-border shipping.

“Our automotive and industrial customers want an easy button for logistics,” said Matt Guffey, UPS chief commercial and strategy officer. “They need reliability, visibility and a partner that understands their supply chains – end to end, today and tomorrow. We have made strategic investments to build the team and the network that meets their needs unlike any other in the industry.”

Beginning in August, NAAF will offer 1-, 2- and 3-day service options to and from Mexico that help manufacturers move high-value, time-sensitive parts with greater speed and predictability. For UPS customers, this means fewer delays at the border, improved visibility from origin to destination and greater confidence in keeping production lines running.

A Network Built to Serve Automotive and Industrial Manufacturers

In recent years, UPS has modernized its network to improve reliability, visibility and speed — delivering measurable results for every customer, including automotive and industrial manufacturers:

• Competitive value for less-than-truckload shipments with UPS Ground with Freight Pricing for shipments over 150 lbs., ideal for automotive and industrial shippers seeking small-package reliability.
• Expanded early delivery reach with UPS delivering to more U.S. businesses next day by 10:30 a.m. than other major carriers, a critical advantage for tight production schedules.
• Enhanced visibility and control through automation across 67.5% of UPS facilities and RFID sensing technology embedded throughout UPS’s network.
• On-demand, after-hours delivery via Roadie, a UPS Company, enabling parts to be delivered same-day to dealerships and repair shops securely without requiring staff on-site.

David MacNeil, chief executive officer of WeatherTech, weighed in on his company’s experience working with UPS to ship automotive accessories: “When we know what to expect from shipping, it helps us plan with confidence. That clarity allows us to stay focused on delivering a great experience for our customers.”

Dedicated Industry Teams Serving Automotive and Industrial Customers

Complementing its end-to-end network, UPS has established a dedicated team of more than 300 subject matter experts with deep automotive and industrial manufacturing expertise – supported by thousands of UPSers across the network who are ready to serve and deliver.

This combination of network investment and expertise comes at a critical time, as supply chain performance has become a defining factor in speed to market, cost control and long-term competitiveness for manufacturers around the world.

Industrial and automotive companies face pressure to modernize and manage complex global supply chains. UPS is investing to help them move faster, gain control and operate with confidence — delivering industry-specific solutions at competitive pricing that simplify operations, improve visibility and keep supply chains running.

About UPS

UPS (NYSE: UPS) is one of the world’s largest companies, with 2025 revenue of $88.7 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 460,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. More information can be found at www.ups.com, about.ups.com and investors.ups.com.

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Source: UPS