16 January 2013

Volkswagen Group Opens New Engine Plant in Silao, Mexico

- Volkswagen Group’s 100th plant worldwide 
Maximum annual capacity of 330,000 engines
- To supply Volkswagen’s plants in Puebla, Mexico & Chattanooga, U.S.
Group to invest more than $5 billion in North America over next 3 years

Wolfsburg / Silao – 15 January 2013 - Volkswagen is further extending its commitment to manufacturing in North America. The engine plant in Silao in the central Mexican state of Guanajuato was opened today and is the Volkswagen Group’s 100th plant worldwide. The factory will supply Volkswagen’s North American vehicle plants in Puebla (Mexico) and Chattanooga (U.S.) with modern and fuel-efficient TSI engines produced locally in Silao

Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, commented: “The Silao factory is the Volkswagen Group’s 100th plant and therefore represents one of the largest and most international production networks in the automotive industry. With this new plant we are driving our ambitious major North American offensive forward. Over the next three years the Volkswagen Group will be investing more than $5 billion in North America alone. Silao is thus also a strong symbol of our uninterrupted growth trajectory and the Group’s continuing internationalization.” 

Strengthening its market position in North America is an essential component of the Volkswagen Group’s global growth strategy, based on models such as the Jetta, the Beetle, and the new U.S. Passat. These vehicles have been tailored to the demands of the market and are produced at North American factories with a high degree of localization. 

With the start of engine production in Silao, Volkswagen is continuing a success story in Mexico that spans almost 60 years. Along with the Volkswagen plant in Puebla, the MAN commercial vehicles factory in Querétaro, and the planned Audi vehicle plant in San José Chiapa that’s scheduled to begin production in 2016, the Group remains a key growth driver for Mexican industry. 

Going forward, Silao will supply the North American vehicle plants in Puebla and Chattanooga with the latest generation of fuel-efficient TSI engines. The plant is designed for a medium-term annual capacity of 330,000 units. Investment runs at $550 million. Volkswagen will be creating more than 700 new jobs at the 148-acre plant in Silao in the medium term. Further jobs in the region will also be created at suppliers and in the service sector. 

Volkswagen de México currently builds four models for world markets at the Puebla plant. These are the Volkswagen Jetta, Golf Estate/Jetta SportWagen, Beetle, and Beetle Convertible. A total of 604,000 vehicles were manufactured in Puebla in 2012. Production of the U.S.-market Passat began in Chattanooga, Tennessee, in 2011 and more than 150,000 vehicles left the assembly line there in 2012. 

The Volkswagen Group delivered 165,900 (2011: 153,300) vehicles to customers in Mexico in 2012. The Volkswagen Passenger Cars, Audi, SEAT, Porsche, Bentley and Volkswagen Commercial Vehicles brands therefore recorded an 8.2 percent year-on-year rise. 

Source: Volkswagen