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VW opens new engine plant

Volkswagen is further extending its commitment to the North American automotive industry by opening a new engine plant in Silao, Mexico. The new factory is Volkswagen Group’s 100th plant worldwide.

Speaking to press at the opening of the new engine production plant, Martin Winterkorn, chairman of the board of management of Volkswagen, 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 US$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. Europe’s largest car maker is planning annual sales of one million vehicles in the USA alone from 2018 based on models such as the Jetta, the Beetle and the new US Passat tailored to the demands of US customers and which are produced at the North American plants with a high degree of localization.

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

In future, Silao will supply the North American vehicle plants in Puebla und 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 US$550 million. Volkswagen will be creating over 700 new jobs at the 60-hectare plant in Silao in the medium term. Further jobs in the region will also be created at suppliers and in the service sector.

25 January 2013


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