CHICAGO Volkswagen AG will produce the next-generation Golf at its Volkswagen de México manufacturing facility in Puebla, Mexico, beginning in the first quarter of 2014.
Volkswagen is beginning expansion work at the Mexican plant this spring as part of $5 billion in investments in the United States and Mexico. The investment is part of the Wolfsburg, Germany-based automakers plan to spend 50 billion ($64.6 billion) over the next three years to build new plants and upgrade older facilities (amm.com, Nov. 28).
Volkswagen said in November that it planned to begin assembly of the Audi Q5 at a new plant in San José Chiapa, also in Puebla state, in early 2016. The Golf and the Audi Q5 model will both ultimately be sold into the North and South American markets.
"With its existing infrastructure, competitive cost structures and free-trade agreements, Mexico is the ideal location to produce the Golf for the American market," Hubert Waltl, a member of the board of management, said in a statement.
Volkswagen also will open a new plant in Silao, Mexico, to manufacture 1.8- and 2.0-liter turbocharged EA888 engines.
"Producing the Golf in Puebla puts Volkswagen closer to its goal of building more than 75 percent of the cars Volkswagen of America sells in the Nafta region," Jonathan Browning, president of Herndon, Va.-based Volkswagen of America Inc., said. The new Golf should reach dealer showrooms in the first half of 2014.