Volkswagen to announce $1 billion investment in Mexico: source
Reuters
Published Mar 05, 2015 06:02PM ET
Volkswagen to announce $1 billion investment in Mexico: source
MEXICO CITY (Reuters) - German carmaker Volkswagen (DE:VOWG_p) will next week announce an investment worth around $1 billion in Mexico to expand its Puebla plant, a person familiar with the matter said on Thursday.
The investment, aimed at production of the carmaker's Tiguan compact, is due to be unveiled on Monday and is expected to generate about 1,900 jobs, the person said.
Volkswagen spokeswoman Consuelo Minutti declined to comment.
As of December, total investment in the auto sector in Mexico had reached $19 billion under President Enrique Pena Nieto, who took office two years earlier, the government says.
Volkswagen, which opened its sprawling Puebla plant in 1964, last year produced 475,121 vehicles out of about 3.2 million autos manufactured in the country, data from the Mexican Automotive Industry Association (AMIA) show.
Mexico is the seventh biggest manufacturer of autos and the fourth largest exporter in the world, according to AMIA. More than 80 percent of those vehicles are destined for sale abroad.
Total auto production increased 27 percent last year, compared to 2013, and AMIA has predicted that Mexico will produce more than 5 million vehicles by 2020.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.