Volkswagen has opened a new section in its Puebla plant in Mexico as part of plans for further investment in the country to 2013.
The upgraded area will build the new Jetta and cements Volkswagen’s aim to sell one million vehicles per year in the US by 2018.
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“Expansion of the Puebla plant is a major step towards the future for Volkswagen in Mexico,” said Volkswagen group production member of the board Jochem Heizmann.
“As a result, Puebla remains the main supplier of compact class vehicles in North America. Efficient production with high localisation and new products will bring further growth momentum in Mexico,”
With an annual production capacity of 525,000 units, Puebla is now one of the largest car manufacturing plants in the Volkswagen Group.
Heizmann added the Group also intended to build a new engine plant as part of a growth strategy for North America:
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By GlobalData“The new plant is to supply our factories in Puebla and Chattanooga with the latest generation of engines from 2013,” he said.
“These engines will set the benchmark in terms of consumption and emissions.”
The choice of location has not yet been finalised, but Volkswagen said a decision will be taken soon with Mexico a possible option.
Under the company’s Strategy 2018, it is planned to invest up to US$1bn in Mexico during the next three years. Some of these funds will be spent on constructing new production plant for the Beetle successor.
The new version will be launched in 2011 and will ensure a total of 2,000 jobs in Puebla are safeguarded.
Volkswagen de Mexico CEO Otto Lindner added some US$1bn in total had already been invested during the period 2008 – 2010 in expanding and modernising the section of the Puebla plant.
“More than 70% of the parts installed in the Jetta come from Mexican suppliers,” he said.
