Motor Trend magazine reports that Volkswagen AG has said it would produce 320,000 cars at its central Mexican plant in 2005, about 39 percent more than this year, to capitalise on the weaker dollar.

Hurt by slow sales in the United States, Volkswagen's Mexican arm produced 20 percent fewer autos this year than in 2003, when its plant outside the colonial city of Puebla built 287,000 units, Thomas Karig, Volkswagen's cooperate relations director, said Wednesday, according to Motor Trend.

The company's new Jetta, which will be sold as the Bora model in Mexico, will be produced in a new wing of the Puebla operations, where workers will assemble parts arriving from Brazil, Karig told foreign reporters, the report said.

Production of the overhauled Jetta will account for 200,000 of the cars the Puebla plant will produce in 2005, he said.