Mexican President Felipe Calderon announced this week that Volkswagen will invest more than $1 billion in its factory in the state of Puebla, with more than $400 million of the investment going toward the launch of a new compact sedan in 2010. The news comes on the heels of a July 15 announcement by VW that it had decided to construct a $1 billion plant in Chattanooga, Tennessee, where the automaker plans to build a newly designed mid-sized sedan beginning in 2011. That's a $2 billion commitment in less than two weeks at a time when most automakers are wracking their collective brains trying to cut costs. VW spokeswoman Consuelo Minutti told Reuters that production of the new compact sedan at the Puebla factory will start in March or April of next year, but for security reasons she would say nothing more about the compact sedan. That said, the Mexico plant already produces the Jetta and New Beetle, primarily for U.S. consumption. It'
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Volkswagen to Invest $1 Billion in Mexico Plant to Build Unspecified New Model
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