By IANS/EFE,
Mexico City : German auto giant Volkswagen is planning to invest $1 billion in Mexico over the next three years.
Volkswagen executive Jochem Heizmann made the announcement Wednesday during a ceremony to inaugurate a new section of the Volkswagen plant in Mexico’s Puebla city.
Heizmann said the company will announce its final decision shortly.
The Puebla plant, some 125 km from the Mexican capital, will manufacture a special version of the company’s Jetta model.
He added that the new plant “is to supply our factories in Puebla and Chattanooga with the latest generation of engines. These engines will set the benchmark in terms of consumption and emissions”.
Referring to the expansion of the Puebla plant, Heizmann said the project “is a major step toward the future for Volkswagen in Mexico. As a result, Puebla remains the main supplier of compact-class vehicles in North America”.
The Puebla plant has an annual production capacity of 525,000 units and is “one of the largest car manufacturing plants in the Volkswagen group”.