Volkswagen posts $1 billion for Mexican EV plant

Volkswagen on Friday announced a $1 billion investment in its Mexican plant. This is the second phase of funding for this facility to produce electric vehicles (EVs).

Volkswagen has shared no production plans at this factory located in central Puebla state.

This announcement from the German car maker is an aftermath of an initial plan to invest $763.5 million in the expansion of an existing facility.

Data revealed by the National Institute of Statics and Geography (INGEI) revealed that sales of hybrid and electric vehicles in Mexico doubled in July last year compared to 2022.

It’s expected the EV momentum will continue to increase in the country throughout 2024.

Volkswagen ID.3 (Credit: Volkswagen)

VW’s headquarters and production plants are known as “Volkswagen de Mexico” in Puebla, 74 miles southeast of Mexico City.

It is the largest automobile factory in Mexico with a surface of 300 hectares. The plant hosts production processes including stamping of body parts and production of components. In 2023, the plant produced 349,227 vehicles.

(source – Reuters)