"Our strategic objectives for Volkswagen de México are clear: we are aiming for further growth in Mexico and to extend our market leadership. Our new models are the basis for this growth. In addition, we will continue to increase our purchasing volumes in North America and especially in Mexico," Otto Lindner, CEO of Volkswagen de Mexico.
At this point, Volkswagen Mexico is building Jettas, Boras and New Beetles so the manufacturer will spend approximately $400 million of the total investment to set up the assembly lines for the new compact sedan. Last year, Puebla had a total output of 450,000 units, with approximately 80 percent of this volume exported to other markets, according to figures provided by Reuters.
"The rest of the investment will go toward the modernization of existing production lines and the development of the new vehicle," Lindner added.
Volkswagen says the expansion of the Puebla plant is "part of a larger North American strategy" that will allow the automaker to gain a larger market share in this particular region. Volkswagen is also building a new facility in Chattanooga, Tenn. that is expected to open its doors in 2011 to produce around 150,000 cars per year. It will also host a new model specifically designed for the North American market.
The two plants, the one in Chattanooga and the one in Mexico, are expected to deliver up to 800,000 cars in the United States by 2018.
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