Volkswagen de México on Monday (9 March) said it would spend US$1bn expanding and modernising its Puebla plant to build a three-row version of the Tiguan for launch in 2017.

The spend will include tooling to produce parts at suppliers. VW claimed the project would add around $1bn a year to its auto parts purchasing volume in Mexico and “create a significant impact on local economics and employment”.

“At Volkswagen de Mexico alone, Tiguan production will employ about 2,000 people,” the automaker said in a statement.

“Localisation has become key to safeguarding our competitive position on the global market and manufacturing the Tiguan in Mexico will bring production closer to the US market,” said Volkswagen Group of America president and CEO Michael Horn.

“It is another proof point Volkswagen is committed to further growth in the US and North American markets. With production of the Golf A7 and the Tiguan now moved to Puebla, we will build approximately 90% of our products in the NAFTA region.”

Volkswagen specified the production capacity for this longer Tiguan would be 500 units per day. This model will be supplied to North and South America plus other world markets (excluding the European Union and China).

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

New lines will be installed at Puebla for the SUV addition. The new body shop will include a high level of automation with advanced programming and control systems.  New buildings will add 90,000 sq m to Volkswagen de México’s Puebla facilities.