volkswagen plant in puebla Highlighted area indicates new addition to the Puebla plant.

Volkswagen confirms expansion in Puebla

Plant will produce new Tiguan SUV, with output totaling 500 per day

Volkswagen Mexico today confirmed last week’s rumors: its assembly plant in Puebla will be expanded with a US $1-billion investment.

Expansion and modernization of production facilities at the plant will allow it to build a longer version of the Tiguan sport utility vehicle. Capacity will be for 500 vehicles per day, which will be sold in North and South America as well as other world markets, the company said today.

“Localization has become key to safeguarding our competitive position on the global market and manufacturing the Tiguan in Mexico will bring production closer to the U.S. market,” said Michael Horn, president and CEO of Volkswagen Group of America.

The new investment will also pay for some retooling at suppliers’ factories.

At the company’s Puebla plant it will mean the addition of new high-technology assembly lines and a high level of automation in the new body shop, and add 90,000 square meters to the existing facility’s total floor area. Production will begin at the end of next year.

The expansion will create about 2,000 new jobs, the company said, and add $1 billion a year to its expenditures on auto parts in Mexico.

The latest figures from the Mexican Automotive Industry Association show a 14% increase in automotive production in February over the same month last year. The association represents Ford, General Motors, Honda, Mazda, Nissan, Toyota, Volkswagen and Fiat.

Source: MarketWired (en)

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