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Latin America Business News

Volkswagen to Build New Plant

Wednesday, German automaker Volkswagen said it plans to build a $550 million plant in the central Mexican in Silao in the state of Guanajuato.

Volkswagen de Mexico President Otto Lindner said the investment plans are part of the company’s “long-term growth strategy in North America.”

The Silao plant will supply assembly plants in Pueblo, Mexico City and Chattanooga, Tennessee with next-generation engines.

The plant’s construction will begin next month, and the $550 million is not only for the construction, but also for the development of the new engine itself.

In a statement, the company said, ‘Volkswagen will create approximately 700 jobs over the medium term on site in Silao. In addition, further jobs will arise in the region with suppliers and in the area of logistics.’

Volkswagen de Mexico President Otto Lindner added, ‘During its more than 40 years in Mexico, the Puebla assembly plant has become one of the Volkswagen Group’s largest production centers. Now a decision has been made to establish a second productive unit in Mexico, a necessary step in our growth strategy in the region.’