Volkswagen expands production capacity in Mexico

Volkswagen Group production continues on its growth path in Mexico. Mexican President Felipe Calderón and Prof. Dr. Jochem Heizmann, member of the Board of Management of Volkswagen AG with responsibility for ‘Group Production’, yesterday opened a new section at the Puebla plant of Volkswagen de México. This is where the new Jetta will be built using state-of-the art manufacturing technology. The Group’s commitment in Mexico is part of its long-term growth strategy for North America. The Company is aiming to sell one million vehicles per year in the USA by 2018.

“Expansion of the Puebla plant is a major step towards the future for Volkswagen in Mexico. As a result, Puebla remains the main supplier of compact class vehicles in North America. Efficient production with high localization and new products tailored to the wishes of our North American customers will bring further growth momentum in Mexico,” Prof. Dr. Jochem Heizmann said. With an annual production capacity of 525,000 units, Puebla is now one of the largest car manufacturing plants in the Volkswagen Group.

Heizmann reiterated the Group’s plans to build a new engine plant as part of the growth strategy for North America:

 “The new plant is to supply our factories in Puebla and Chattanooga with the latest generation of engines from 2013. These engines will set the benchmark in terms of consumption and emissions.” The choice of location has not been finalized yet, but a decision will be taken soon. Mexico is one possible option.

Under Strategy 2018, it has planned to invest up to US$1 billion in Mexico over the next three years. Some of these funds will be spent on constructing new production plant for the Beetle successor. The new version of the style icon will be launched in 2011 and will safeguard a total of 2,000 jobs in Puebla.

Otto Lindner, CEO of Volkswagen de México, pointed out that in total, some US$ 1 billion had already been invested during the period 2008 – 2010 in expanding and modernizing the section of the Puebla plant opened yesterday and in developing the new Volkswagen Jetta. “More than 70 percent of the parts installed in the Jetta come from Mexican suppliers. Volkswagen’s high degree of localization supports the development of the supplier industry in Mexico and therefore makes a contribution to economic and social development in the entire region,” he underscored.