Volkswagen has begun production of the redesigned Beetle in Puebla, Mexico.
The plant built 1.15m units of the previous Beetle between 1997 and 2010.
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The Puebla plant is the largest car factory in Mexico and supplies North and South America and Europe with the Jetta. The Beetle and Golf/Jetta wagon are solely built there.
In 2010, the factory produced about 435,000 vehicles. Puebla also manufactures engines for the American continent and, with 15,000 on the payroll, is one of Mexico’s largest employers.
Dow Jones said the company had spent US$400m readying the plant for the redesigned Beetle, and it was expected to build about 100,000 units of that car next year. Local content is 70% and the plant capacity 500,000.
Speaking during a launch ceremony at the plant, Mexican President Felipe Calderon said Mexico had become one of the most attractive nations in the world for car production, particularly as an export platform to the US.
Mexico, Calderon said, was the ninth-largest car maker in the world and the seventh-largest exporter with nearly 2m cars sold abroad last year. He said he expected continued robust investment in export-oriented manufacturing, particularly of cars headed to the US.
