Volkswagen next week reportedly will announce a spend of about US$1bn to expand its Puebla plant in Mexico.
The investment, aimed at production of the carmaker’s Tiguan compact, is due to be unveiled on Monday and is expected to generate about 1,900 jobs, a source told Reuters. Volkswagen spokeswoman Consuelo Minutti declined to comment to the news agency.
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Volkswagen opened the plant in 1964 and last year produced 475,121 vehicles out of about 3.2m made in the country, Reuters said, citing data from the Mexican Automotive Industry Association (AMIA).
Mexico is the seventh biggest manufacturer and the fourth largest exporter in the world, according to AMIA. More than 80% of those vehicles are exported.
Total auto production increased 27% last year, compared to 2013, and AMIA has predicted that Mexico will produce more than 5m vehicles by 2020, Reuters added.
