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Report: Volkswagen building engine plant in Mexico to supply U.S. factory

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Report: Volkswagen building engine plant in Mexico to supply U.S. factory

by Jeremy Korzeniewski (RSS feed) on Sep 22nd 2010 at 5:32PM

Reports streaming out of Mexico indicate that Volkswagen will announce a new plant about 250 miles northwest of the Mexico City in the central Mexican state of Guanajuato. If true, this facility is expected to produce engines for both VW's new plant in Chattanooga, Tennessee, along with the already up-and-running plant in Puebla, Mexico.

Such an announcement has been expected, as executives from the German automaker have publicly stated that the company will spend $1 billion on additional production facilities in Mexico over the next three years.

The engines from this plant would be destined for North American-bound Volkswagen Jetta sedans and the upcoming New Midsize Sedan that we've all been waiting so patiently for over the last couple of years.

link:

http://www.autoblog.com/2010/09/22/report-volkswagen-building-engine-plant-in-mexico-to-supply-u-s/

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REPORT: VW TO ANNOUNCE NEW NA ENGINE PLANT

By Drew Johnson

Volkswagen – Europe’s largest automaker – is expected to announce plans for a new Mexico engine plant later this week. The new plant will provide engines for VW’s Puebla, Mexico and Chattanooga, Tennessee production facilities.

According to an inside source, VW will announce the new plant sometime tomorrow. A VW representative confirmed that an announcement is forthcoming, but failed to reveal what the announcement would concern.

The plant will likely supply engines for VW’s Puebla-built Jetta and its upcoming mid-size sedan, set to begin production at the company’s new Tennessee plant next year. The engines produced at the plant will conform to new emissions regulations set to take effect in the United States in 2013.

An exact location for the plant has yet to be revealed, but publications in Mexico have suggested the new plant will be built in Guanajuato. Expect an official word sometime tomorrow.

link:

http://www.leftlanenews.com/report-vw-to-announce-new-na-engine-plant.html

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Volkswagen Building Engines in Mexico for Tennessee Sedan

By Marty Padgett

Editorial Director

September 22nd, 2010

Volkswagen's expanding again, this time with an engine plant in Mexico that one day will feed its North American factories with powertrains for at least two new sedans.

VW confirmed in a press release that the new plant in Silao, Mexico--not far from a GM factory that houses assemby for pickups and SUVs--will be up and running in 2013.

The German automaker confirms the plant will assemble engines to be used in products built in its Puebla, Mexico and Chattanooga, Tennessee, factories. That suggests a new range of four- and six-cylinder engines that could slot into the current Puebla-built Volkswagen Jetta as well as the upcoming mid-size sedan that will replace the Passat in the 2012 model year.

Yesterday, a VW executive confirmed as High Gear Media reported last year, that the current VW Passat would be pruned from the U.S. lineup after the 2010 model year. A concept based on the new "NMS" sedan will be shown at January's Detroit auto show, with sales of the new vehicle beginning later in 2011.

Volkswagen has a corporate goal across all its brands of selling one million vehicles each year in the U.S. by 2018.

The new engine plant will have a capacity of 330,000 units annually, will cost $550 million to build and will employ about 700 people.

link:

http://www.thecarconnection.com/marty-blog/1049623_volkswagen-building-engines-in-mexico-for-tennessee-sedan

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VW Announces New Engine Plant in Mexico, will Supply Chattanooga Factory with a Latest Generation Powerplant

WEDNESDAY, SEPTEMBER 22, 2010

Volkswagen has revealed plans to open up a new engine plant in Silao, Mexico in 2013 to supply vehicles made in Puebla, Mexico and Chattanooga in the USA with a latest generation powerplant. Construction works for the plant are set to begin this year.

The German firm said the total investment for the development of the new engine -details of which were not released- as well as for building the new site comes to a total of USD 550 million (€ 400 million), adding that the factory will create approximately 700 jobs over the medium term on site.

"North America is and remains one of the biggest and most important markets for the automotive industry," said Prof. Dr. Jochem Heizmann, board member of the Volkswagen Group.

"The current expansion of capacity of the plant in Puebla, the upcoming start of production in Chattanooga, as well as the opening up of the new engine plant in Silao, clearly shows how Volkswagen AG is going on the offensive in North America as well."

Volkswagen said the new plant and engine will further strengthen its market position in North America and help achieve its target sales of one million vehicles in the USA annually from 2018.

Currently, VW produces the Jetta, Golf estate and the New Beetle in Puebla, Mexico. From 2011, production of the firm's New Midsize Sedan (NMS) will begin in Chattanooga, Tennessee.

According to previous statements from company officials, the NMS (seen in these sketches) will be slightly larger than the current-generation Passat, which it will replace here in the States.

link:

http://carscoop.blogspot.com/2010/09/vw-announces-new-engine-plant-in-mexico.html

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VW to build engine plant in Mexico to supply Tenn. factory, source says

By STEPHEN DOWNER, AUTOMOTIVE NEWS

Engines from the new Volkswagen plant in Mexico will be used in cars built at VW's plant in Chattanooga, Tenn., shown.

Volkswagen AG plans to announce Wednesday that it will build an engine plant in Mexico to supply vehicles assembled in North America, a source at the company's assembly plant in Puebla said.

A VW spokesman confirmed that the company will make an announcement but declined to say what it will concern.

The new plant will supply an existing VW plant in Puebla, 75 miles southeast of Mexico City, and one being built in Chattanooga, Tenn., the source said. The Puebla plant builds the VW Jetta for the United States as well as other models for Mexico and Latin American markets. The Chattanooga plant is scheduled to begin building a new mid-sized sedan early next year.

The passenger-car engines to be produced at the new plant will satisfy U.S. emission standards set for 2013, the source said.

He declined to confirm a local newspaper report that the chosen location is about 250 miles northwest of the Mexican capital, in the central Mexican state of Guanajuato.

The city of Leon edition of the Mexico City newspaper Milenio quoted “federal government sources” as saying Guanajuato state has won the race for the plant. The newspaper said the announcement will be made Wednesday at Los Pinos, the capital's presidential residence. The Volkswagen source could not confirm where the event will be held.

On a visit to Mexico in July, Jochem Heizmann, a member of Volkswagen Group's executive council, said the automaker will spend $1 billion in Mexico over three years. He said the group was planning an engine plant in North America but didn't say where.

Read more: http://www.autoweek.com/article/20100922/CARNEWS/100929965#ixzz10JkMOXbA

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VW will build $550 million engine plant in Mexico

Stephen Downer

Automotive News Europe -- September 23, 2010 06:01 CET

MEXICO CITY -- Volkswagen AG will start building a $550 million gasoline engine plant in Silao, in the central Mexican state of Guanajuato, next month, the company said today.

The plant will be completed by 2013 and have a capacity of 330,000 engines a year, VW said.

With 700 full-time employees, the plant will supply Volkswagen's assembly plant in Puebla, 75 miles (about 120km) southeast of here, and one being built in Chattanooga, Tennessee.

The Puebla complex assembles the VW Jetta for the United States and other models for Mexico and Latin American markets. It also built the New Beetle until August and is expected to build a redesigned New Beetle for the 2012 model year.

The Chattanooga plant is scheduled to begin building a new mid-sized sedan early next year.

The engines built in Silao, about 250 miles northwest of the Mexican capital, will satisfy U.S. emission standards set for 2013, a VW source in Puebla said.

A Volkswagen spokesman said details of the engine plant's content, such as the number of robots to be installed, were unavailable. "We might have this information within a couple of weeks," he said.

Despite receiving fiscal incentives from municipal and state authorities to build the plant in Puebla, Volkswagen opted for Silao because of its “qualified work force,” an already-developed automotive industry and access to major road and rail links, Volkswagen said.

It will be built on 148 acres at the Puerto Interior industrial park, close to a General Motors Co. truck plant and a cluster of two dozen auto industry suppliers.

A Volkswagen spokesman said the German company also considered sites in the states of Coahuila and San Luis Potosi as well as Puebla state before deciding on Silao in Guanajuato state. He said Chattanooga never had been in the running but could not say whether other U.S. sites had been considered.

“For more than 40 years, the Puebla assembly plant has been one of the Volkswagen Group's largest production sites,” Lindner said in Spanish. “Our decision to establish a second production unit in Mexico [away from Puebla] was necessary to continue our strategy of growth in the region.”

However, the Milenio newspaper quoted Javier Maldonado Moctezuma, president of Puebla's Council of Business Organizations, as saying a “lack of flexibility” on the part of the Independent Union of Volkswagen de Mexico Workers (Sindicato Independiente de Trabajadores de Volkswagen de Mexico) had been a “decisive factor” in the company's decision to put the engine plant in Silao, more than 300 miles away.

Volkswagen made the announcement at Los Pinos, the official presidential residence in Mexico City, during a ceremony presided over by President Felipe Calderon Hinojosa.

Otto Lindner, president of the executive council of Volkswagen subsidiary Volkswagen de Mexico, led the Volkswagen delegation.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100923/COPY/309239997/1054#ixzz10Mgswu1I

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Officially Official: Volkswagen confirms new engine plant in Silao, Mexico

by Zach Bowman (RSS feed) on Sep 23rd 2010 at 5:22PM

Volkswagen has officially announced plans to construct a new powerplant facility in Mexico. Designed to crank out a total of 330,000 engines a year, the Silao plant will cost the company $550 million to build and will bring around 700 jobs to the area. VW says that the new factory is key to its strategy for expansion, and it will help provide engine components for both the new Jetta, which is built in Puebla, Mexico and the company's New Midsize Sedan (NMS), which is slated to be built in the company's Chattanooga, Tennessee plant starting in 2011.

The new facility also underscores the VW decision to redouble its focus on the American market. The manufacturer says that the new plant is part of its plan to create vehicles that are more tailored to American tastes in a quest to go after a larger market share.

In addition to having an ample work force, the 60-hectacre piece of land already features transportation options and had been previously developed. The full press release can be found after the jump.

[source: VW]

Show full PR text

VOLKSWAGEN GROUP EXPANDS NORTH AMERICAN INVESTMENT WITH NEW ENGINE PLANT

HERNDON, Va. / MEXICO CITY, Sept. 22, 2010 - The Volkswagen Group announced today that it will build a new engine plant in Silao, Mexico as part of its long-term expansion strategy in North America. Beginning in 2013, the new plant in Silao will supply the latest generation of engines to the vehicle plants in Chattanooga, Tenn. and Puebla, Mexico.

"This investment is yet another signal of the importance of North America to the Volkswagen Group," said Jonathan Browning, President and CEO, Volkswagen Group of America, Inc. "The current expansion of capacity of the plant in Puebla, the upcoming start of production in Chattanooga, as well as the opening of the new engine plant in Silao, clearly shows Volkswagen's commitment to winning in this market."

Strengthening the market position of the Volkswagen Group in North America is an essential component of the company's global expansion strategy. Volkswagen Group is planning sales of one million vehicles in the U.S. annually by 2018. The core element of this strategy is vehicles tailored to the demands of U.S. customers, such as the all-new Jetta and the New Midsize Sedan (NMS). The all-new Jetta is built in Puebla, Mexico and the NMS will be produced in Chattanooga, Tenn. beginning next year. Both vehicles have a high degree of localization.

The new engine plant is designed for an annual capacity of 330,000 engines. The investment volume for the development of the new engine as well as for building the new site comes to a total of $550 million. Volkswagen will create approximately 700 jobs over the medium term on site in Silao. In addition, further jobs will arise in the region with suppliers and in the area of logistics. The Volkswagen Group selected Silao as the new engine site because – in addition to having a qualified work force and a developed supplier structure – the region offers a site of 60 hectares, which is already developed and has an existing transport infrastructure.

"North America is and remains one of the biggest and most important markets for the automotive industry," explained Prof. Dr. Jochem Heizmann, member of the Volkswagen Aktiengesellschaft Board of Management for Group Production.

Currently, the Volkswagen Jetta, Golf Estate and the New Beetle are produced in Puebla, Mexico. Production of the NMS will begin in Chattanooga in 2011.

link:

http://www.autoblog.com/2010/09/23/officially-official-volkswagen-confirms-new-engine-plant-in-sil/

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