Production of the latest Golf has begun at the Volkswagen plant in Puebla, Mexico which will build other family models for North America later.

The production start ceremony also marked the 50th anniversary of Volkswagen de México.

Mexican Golfs will be exported to the US and Canada ahead of a mid-year launch, some 18 months behind Europe. Previous generation Golfs have been shipped mostly from Germany though some were assembled in Brazil.

VW spent about US$700m readying the plant for the seventh generation model. Job One was a red GTI2 and wagon production for North and South America will begin later this year. Production capacity is 700 vehicles a day.

VW chairman Martin Winterkorn said: “The start of Golf 7 production will give Volkswagen a big boost in the North America region. And it underscores our commitment to Mexico as an automotive location. That is further confirmed by the US$7bn our gGroup will be investing in North America in the period to 2018.”

Volkswagen de México CEO Andreas Hinrichs said: “Our Puebla factory is today one of the group’s highest exporters and one of its largest plants worldwide. Over 10m vehicles have already been shipped from here to customers all over the world.”

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Puebla also builds Beetle coupé and cabriolet model plus the Jetta sedan which will move to the modular transverse toolkit (MQB) platform “in the medium term”.

VW began manufacturing its petrol TSI engines at the Silao engine plant early in 2013. A new Audi factory in San José Chiapa will start production in 2016.

Volkswagen began exports to Mexico in 1954 and, on 15 January, 1964, founded import, production and sales company called Volkswagen de México. The Beetle was first produced at the new Puebla plant in 1967 with the final rear engine model made as recently as 2003. Alongside the Bulli (the Microbus derivative), the Beetle motorised Mexico for decades, according to VW.

In 1997, Puebla became the only group plant to build the New Beetle, exporting it worldwide. Production of the fourth Jetta generation commenced at the same time. Both models boosted exports.

Since 1964, the automaker has spent US$8bn in Mexico.