Volkswagen has been using Mexico as a place to build its cars for years
, and for good reason too. The country is located on the southern border of the United States which means that cars made in Mexico can quickly be delivered to what has become one of the largest automotive markets in the world. Volkswagens have also become one of the most popular cars in Mexico as well thanks in part to the company's manufacturing presence in the country.
One of the first carts the company started making in Mexico was the original beetle. In fact, Mexico is one of the last places that this car was built. Cheap and abundant labor made the country a great place to build the car among other things. Volkswagen has just announced that they plan on building a brand new power plant facility in the country. The new plant will cost Volkswagen around $550 million and will bring 700 much needed jobs to the area. The company currently builds the new Jetta in Puebla, Mexico and the new factory will be supplying engine components for this car as well as components for a new sedan to be built in their Tennessee plant starting in 2011. The new engine manufacturing facility is expected to build a whopping 330,000 engines per year. With such a high number this plant will most likely become the biggest engine components facility in Northern America.
Volkswagen has roots in Mexico and has a good experience with factories in the country for years. The new plant will be a great way for the country to gain a large amount of much needed jobs as well. There is little word so far on what the previously mentioned new sedan will be. The sedan is expected to begin production in 2011.