Wolfsburg, Germany – Volkswagen has confirmed its plans to invest US$1 billion in its plant in Puebla, Mexico, to expand production facilities and develop a new model.

Volkswagen de México made the announcement in the presence of Mexican president Felipe Calderón, confirming an announcement of the company’s intentions made in February 2008 by Prof. Dr. Martin Winterkorn, chairman of the board of management of Volkswagen AG.

Construction has already begun on the new production facilities, which will start assembling a new model built exclusively for global markets from mid 2010. The growth of the Puebla plant will allow Volkswagen to increase its daily capacity by 300 units to 2,100 vehicles.

The plant expansion will cost $410 million. The remaining investment is earmarked for supplier tooling, and in particular for development of the new model, in which Mexican engineers play an instrumental role.

The announcement in Puebla is part of a larger North American strategy. In 2011, a new plant in Chattanooga, Tennessee will start production and will produce 150,000 vehicles a year, with a car specifically designed for the North American market. The company said it plans to sell 800,000 Volkswagens in the U.S. by 2018.


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