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By Andrew Ganz

Yesterday, Volkswagen and Mexican president Felipe Calderon officially opened an expansion to the German automaker’s Puebla, Mexico, assembly plant.

Located east of Mexico city in the prospering industrial city of Puebla, VW’s new expansion will be used to assemble its redesigned Jetta primarily for North American markets. Combined with existing assembly plants, the Puebla site is now capable of building 525,000 vehicles, helping to put VW on track to meet its 1 million annual U.S. vehicle sales goal by 2018.

Over the next three years, VW has allocated $1 billion to even further increase vehicle and component assembly in Puebla. Its biggest project is increasing capacity for its next-generation New Beetle, which is set to go on sale next year.

VW will also build a new engine plant in Puebla. Set to open in 2013, the engine factory will assemble powertrains for assembly plants in Puebla and, soon, in Chattanooga, Tennessee.



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