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.