Friday, March 6, 2015

VW plans $1 billion investment in Mexico to support Tiguan output, report says

autonews.com


MEXICO CITY (Reuters) -- Volkswagen AG will unveil plans next week to invest around $1 billion in Mexico to expand its Puebla assembly plant, a person familiar with the matter said on Thursday.

The investment, aimed at supporting production of the Tiguan compact crossover, is due to be unveiled on Monday and is expected to generate about 1,900 jobs, the person said.

As of December, total investment in the auto sector in Mexico had reached $19 billion under President Enrique Pena Nieto, who took office two years earlier, the government says.

Volkswagen, which opened its sprawling Puebla plant in 1964, last year produced 475,121 vehicles out of about 3.2 million autos manufactured in the country, data from the Mexican Automotive Industry Association show.

Mexico is the seventh biggest manufacturer of autos and the fourth largest exporter in the world, according to AMIA. More than 80 percent of those vehicles are destined for sale abroad.

Total auto production increased 27 percent last year, compared to 2013, and AMIA has predicted that Mexico will produce more than 5 million vehicles by 2020.

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