Automobile manufacturer “Volkswagen” and automotive supplier “Continental” on Thursday (27) pledged significant investments in Mexico amounting to nearly one billion dollars.
“Volkswagen” will invest about US$763.5 million between 2022 and 2025 in its complex in the central state of Puebla, one of Volkswagen’s most extensive facilities in the world, to build a new paint shop and start production of a new gasoline vehicle.
The company, which currently produces the Jetta, Taos, and Tiguan models at the plant, did not provide details on which vehicle it will add to its lineup.
“Volkswagen” added that the paint shop will be powered by wind turbines, making it the automaker’s first facility to run solely on clean energy.
Earlier, German automotive supplier “Continental” announced that it would invest US$209.16 million to open a new automotive electronics factory and expand the capacity of an existing brake components plant in Guanajuato.
Both projects are nearing completion, with an opening expected early next year.
“Continental” expects the expansion to create more than 1,500 new jobs over the next three years.
Other major car companies pumping money into the country include “General Motors,” which announced a US$1 billion investment in its Ramos Arizpe complex last year. It will begin producing electric vehicles in 2023.
“Nissan” announced a US$700 million investment in May over the next three years.
Jeep manufacturer “Stellantis” also reportedly plans to invest billions in the production of electric vehicles in Mexico, while Tesla CEO Elon Musk is considering an investment in the north of the country, according to “Reuters” this week.