Herndon, Virginia – Volkswagen will build a new engine plant in Silao, Mexico as part of its long-term expansion strategy into North America. Beginning in 2013, the new plant will supply the latest generation of engines to vehicle plants in Chattanooga, Tennessee and Puebla, Mexico.

“This investment is yet another signal of the importance of North America to the Volkswagen Group,” said Jonathan Browing, president and CEO of the Volkswagen Group of America. “The current expansion of capacity of the plant in Puebla, the upcoming start of production in Chattanooga, as well as the opening of the new engine plant in Silao, clearly shows Volkswagen’s commitment to winning in this market.”

The new plant is designed for an annual capacity of 300,000 engines and represents a total investment of US$550 million.

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