The decision, which is part of the company’s long-term expansion strategy, was announced by Otto Lindner, Chairman of the Board of Management of VW de Mexico this Wednesday in Mexico city in the presence of Mexican President Felipe Calderon and the Governor of the state of Guanajuato, Juan Manuel Oliva Ramirez.
“In over 40 years our plant in Puebla has developed into one of the largest vehicle plants in the Group. The decision to open up a second site in Mexico is the next logical step as part of our expansion strategy," Lindner said.
The construction for the new site will debut by the end of the current year, with the site set to become an engine production facility. Starting from 2013, the new plant will supply engines to sites in Puebla, Mexico and Chattanooga, U.S..
The Silao project requires an investment of around $550 million (EUR400 million). This will create around 700 on-site jobs over the medium term. In addition to that, other jobs will be created in the region with suppliers and in the logistics area.
"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. "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."
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