Volkswagen said on Monday it plans to start building a new assembly plant for trucks and buses in Mexico on hopes it can grasp 15% of the market by 2006, Reuters reported.

The location of the plant, whose construction will start toward the end of the year, has not been decided yet, the company reportedly said in a release. Volkswagen already has one plant in Puebla, Mexico where it produces the New Beetle model [and Jetta], Reuters noted.

"For 2006 we'll reach a capacity of up to 2,000 trucks in Mexico," the company said, according to Reuters, which noted that no financial terms were provided.

According to Reuters, Volkswagen said the new plant - which will create 50 jobs on its initial phase - will be based on its Brazilian truck and bus facility located in Resende, Rio de Janeiro, where some 27,000 units will be made this year.

Starting in summer 2004, the Resende plant will ship parts to the new Mexican facility for further assembly, Reuters said.