Volkswagen eyes $1 billion expansion of Mexican site for Tiguan output

Article by Christian A., on March 12, 2015

Volkswagen plans a $1-billion investment for an expansion of its Puebla facility in Mexico to build a larger, redesigned Tiguan compact crossover. The spending will entail the installation of high-technology assembly lines, according to Andreas Hinrichs, chief executive of Volkswagen Mexico. The investment will also generate around 2,000 jobs and help auto parts suppliers retool their plants to support Tiguan output.

The site will commence building the Tiguan next year and VW will start selling the compact in 2017, Hinrichs said. VW is bound to redesign the Tiguan in 2017, with a long-wheelbase version bound to be rolled out in the United States.

According to VW, the production capacity for the long-wheelbase Tiguan will be 500 units per day, adding that it will shipped to North and South America and other global markets, excluding the European Union and China. VW’s Puebla site already builds the Golf compact underpinned by a version of the Modular Transverse Matrix or “MQB” platform that will also underpin the next Tiguan.

The next Tiguan is a vital part of the carmaker’s plan to boost its sales in the US by offering a broader SUV and crossover lineup. VW is bound to sell the Tiguan in the US in the second quarter of 2017, just right after the carmaker commences sale of its new midsize crossover in the first quarter. This midsize CUV will be larger than the Tiguan and will be built at VW’s Chatanooga site in Tennessee.

It will be underpinned by a different version of the MQB platform. Since President Enrique Pena Nieto took office until December 2014, investments in the auto sector in Mexico had topped $19 billion.

Volkswagen accounted for 475,121 vehicles of the 3.2 million vehicles build in Mexico in 2014, according to data from the Mexican Automotive Industry Association data show. Over 80 percent of those vehicles are bound for export. AMIA expects Mexico to build over 5 million vehicles by the end of the decade.

If you liked the article, share on:

Comments

Recommended

We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
The other day, it was confirmed that Volvo will finally bring the XC40 to US soil, where it will first make an appearance at the 2017 Los Angeles Auto Show....
by - November 23, 2017
There is no question that the new BMW M5 (F90) high performance sports sedan is more powerful, faster and more enticing than the previous model. But for interested customers in...
by - November 23, 2017
Following the Tesla Roadster’s electrifying revelation on Thursday, Musk’s highly ambitious goals have skyrocketed when he tweeted about his future plans for the new sports car. Well, kind of. The...
by - November 23, 2017
Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries