Volkswagen opens new engine plant in Silao, Mexico

Article by Anita Panait, on January 18, 2013

Volkswagen is affirming its commitment to the auto industry in North America by recently opening its newest engine plant in Silao, Mexico. The inauguration ceremony for Volkswagen Group’s 100th plant worldwide was attended by the President Enrique Peña of Mexico, Governor Miguel Marquez of the state of Guanajuato, and Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG.

The Silao factory will be producing modern and fuel-efficient TSI engines to be supplied to Volkswagen’s North American vehicle plants in Puebla, Mexico and Chattanooga, Tennessee.

The Volkswagen Group is aiming to further solidify its strong market position in North America, as an important part of its global growth strategy. The carmaker is targeting to annually sell 1 million vehicles in the United States from 2018.

The vehicles – including the Jetta, the Beetle and the new US Passat – are tailor-fitted to the demands of US customers and are built at the carmaker’s North American plants with a high degree of localization. Volkswagen targets to continue its almost 60-year success in Mexico by commencing engine production in Silao.

The VW Group remains to be a key growth driver for Mexican auto industry, as it also operates several plants in the country like the Volkswagen plant in Puebla and the MAN commercial vehicles site in Querétaro as well as the planned Audi vehicle factory in San José Chiapa set to commence production in 2016.

The $550-million Silao plant, meanwhile, is designed to produce up to 330,000 engines annually, in the medium term. The opening of the Silao plant will result with the creation of over 700 new jobs. More jobs will also be created at VW’s suppliers and in the service sector.

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Topics: vw, engine, mexico, plant

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