Volkswagen de México today announced plans for a US$1 billion, 90,000m2 expansion of its plant in Puebla, including a new industrial facility for body-exterior construction and new logistic spaces. The expansion will be dedicated to the production of a new version of the VW Tiguan, which, according to Andreas Hinrichs, CEO of VW Mexico, will be available on the market in 2017.
The projected infrastructure includes the modernization of the existing facilities, and the introduction of state of the art technology for the manufacturing process and the final product. The combination of this will allow for the production of 500 units daily.
In response to these new developments, the local government is constructing new roads and highways for the plant’s surroundings, easing the transport of people and resources into the facilities. According to VW’s environmental responsibility strategy, the new construction will have the most advanced systems in water and energy consumption, similar to other facilities built in recent years.
The expansion comes not long after the OEM’s 50th year in the state and is expected to generate 2,000 new direct jobs locally. The new industrial facilities and assembly lines will also increase business for auto parts suppliers around the country, as well as bring new investments for these suppliers’ own facilities.
“Our new processes and the facilities we are going to build will have the highest environmental standards, stated Hinrichs. “Along with the local government, we are going to start a bamboo plantation project in Puebla’s Northern mountain range, mitigating the impact on the region, and allowing the local population to use it as an income source.”
Rafael Moreno Valle Rosas, Governor of Puebla, praised the decision, stating that “Today is a very important moment in the transformation of Puebla, because through this investment, and through the production of the new Tiguan, we will consolidate our state as the most important automotive cluster in Mexico.” He continued by reiterating the government’s commitment to develop Puebla’s infrastructure, benefiting both VW and any other companies entering the market.
When Francisco González, Director General of ProMéxico took the stage, he recounted the long history that Volkswagen and Mexico share, before detailing an estimated US$1 billion in annual auto parts requirements thanks to the expansion. He then continued by stating that “The commercial exchange between Mexico and Germany has always been a two-way street, funded in a mutual understanding. This principle should become what defines the relationship between Mexico and Germany, exploring Mexico’s possibilities to establish mutual agreements with a leading country not only in Europe, but in the whole world.” He closed by explaining that Volkswagen’s establishment in Mexico has been “a crucial engine in the country’s economic development. Therefore, ProMéxico will promote new investments to accelerate the development of the country, resulting in more employment and a better future for every Mexican.”