Report – VW close to introduce $1 billion investment in Mexico image

According to a source that has knowledge of the carmaker’s strategy, Volkswagen AG – the largest automaker in Europe and the second biggest in the world – will give a timely boost to its Puebla factory in Mexico.

According to the person, who opted to remain anonymous because the announcement is not a public matter yet, the German company will announce a one billion dollars investment program next week that would cater to the plant’s expansion. The source added that the money would be used to set up the production for the namesake automaker’s VW Tiguan compact sport utility vehicle, with the expansion planned to also create another 1,900 new jobs. Volkswagen, a long time player on the Brazilian market – the largest on the South American continent – first inaugurated its assembly complex at Puebla back in 1964. Total production last year reached 475,121 units – while overall auto production in the country stood in 2014 at around 3.2 million vehicles, according to figures collected by the Mexican Automotive Industry Association (AMIA).

Since December 2014, the government of the country reported that total investment in Mexico by the global automakers surpassed the $19 billion mark – all in the time of President Enrique Pena Nieto, who has been leading the country for the past two years. AMIA says Mexico is now the world’s seventh-largest auto producer and the fourth biggest exporter on the planet – more than 80 percent of the internal production go abroad. AMIA has also forecasted that total auto production in the country will exceed 5 million units by 2020.

Via Reuters