Expansion of e-capacities
Volkswagen is investing a billion dollars in Mexico
February 17, 2024, 9:17 a.m
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The Volkswagen Group is relying on the production site in Mexico in its expansion strategy. The Wolfsburg-based company continues to invest a lot of money in Puebla, as the latest investment announcement shows.
Volkswagen’s Mexican branch announced a further investment of around one billion dollars on Friday (local time). This is the second tranche of the German automobile manufacturer’s investments in its plant in the central Mexican state of Puebla. The payment follows the first phase of investment in which the company invested $763.5 million.
The Volkswagen Group already stated in October 2022 that the investments made between 2022 and 2025 are intended, on the one hand, for the construction of a new paint shop and, on the other hand, for the production of a new gasoline-powered car. The manufacturer added that the paint shop will be powered by wind turbines. It will be the car manufacturer’s first plant to use exclusively clean energy.
The Jetta, Taos and Tiguan models are already manufactured in Puebla. Since 2016, the Volkswagen subsidiary Audi has also been producing the Audi Q5, a compact off-road vehicle, in the same complex, which was later expanded to include a hybrid version. However, in a statement, the company did not provide further details about what type of electric vehicles it will produce in the future at its sprawling complex in Puebla state.