Volkswagen is investing $1 billion into its Mexico plant and plans to start manufacturing an all-new model in early 2010. The plant, in the central state of Puebla, is currently producing Jettas, Boras, and new Beetles. Production of a new model will start in late spring, 2010, according to a company spokeswoman’s recent talk with Reuters.

Volkswagen’s large investment in the middle of an economic downturn can be considered a vote of confidence in the future of Mexico’s auto industry. The Puebla plant accounts a large portion of Mexico’s total manufacturing output, making this investment a huge win for a country in the midst of its largest slump since the 1995 “Tequila Crisis.” Germany’s Volkswagen is Mexico’s second largest auto manufacturer, and sends the majority of its cars to the United States, Mexico, and Europe.

Volkswagen has yet to provide details on the new model that will be produced at the plant. Currently, the Puebla plant is the sole manufacturer of the popular New Beetle model.

News Front  |  Volkswagen Models