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VW will build plant in Mexico

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VW will build plant in Mexico


Volkswagen, Europe's largest carmaker, will build a $550-million engine plant in Mexico as the automaker expands in North America, said Otto Lindner, president of the company's operations in the country.

The plant in Silao will produce 330,000 engines a year for cars built in Puebla, Mexico, and Chattanooga, Tenn., Lindner told reporters in Mexico City. Construction will begin next month, and the factory will begin operations in 2013.

The plant will be Wolfsburg, Germany-based Volkswagen's first in Mexico outside of its Puebla complex, where the company has operated for 40 years and assembles the Jetta, Golf and New Beetle models.

Volkswagen said in a statement it plans to sell 1 million automobiles annually in the U.S. by 2018.

The company said it chose Silao, where General Motors builds vehicles, because the area has suppliers and workforce experienced in autos.

Read more: VW will build plant in Mexico | freep.com | Detroit Free Press http://www.freep.com/article/20100923/BUSINESS01/9230492/1210/VW-will-build-plant-in-Mexico#ixzz10MIQ8Gd8

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