Jan 28 2013, 12:56am CST | by Luigi Lugmayr
"With its existing infrastructure, competitive cost structures and free trade agreements, Mexico is the ideal location to produce the Golf" for markets in North and South America, Hubert Waltl, a member of the board of management of the Volkswagen passenger cars brand, was quoted as saying in a statement.
"The decision to produce the Golf in Mexico builds on Volkswagen's strategy for the North American market", where it plans to invest more than $5 billion over the next three years, the statement said.
"Localization has become increasingly important in automotive manufacturing" as a safeguard against currency fluctuations and a means of being closer to the market where the vehicles will ultimately be sold, it added.
Volkswagen said it plans to invest around $700 million to adapt the production lines at its plant in the central Mexican city of Puebla to manufacture the all-new VW Golf hatchback.
Earlier this month, the Wolfsburg, Germany-based automaker inaugurated a $550 million engine plant in the central Mexico state of Guanajuato.
Last September, it also announced plans to invest $1.3 billion to build a new Audi plant in Puebla.
Volkswagen produced a record 600,000 vehicles in Mexico last year, 88 percent of which were destined for export around the world.
Luigi is the founding Chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at firstname.lastname@example.org. Luigi posts regularly on LuigiMe.com about his experience running I4U.
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