Photo: Volkswagen


German automotive manufacturer Volkswagen (VW) will invest $233.5 million to expand its engine plant in the central Mexican state of Guanajuato, in a bid to boost production capacity aimed at the North American market, the company announced on Thursday, Nov. 12.

Added capacity will be used to manufacture the new EA211 turbo-charged engine at the VW plant in Silao, Guanajuato, which will be integrated into Volkswagen vehicles in North America in 2021, the president of the company in Mexico, Steffen Reiche, explained during a videoconference.

The company’s executive vice president of production and logistics, Christopher Glover, said the investment will increase production capacity at the plant by 75 percent.

The new engine, Glover said, joins the production of the EA888 2-liter turbo-charged engine, which Volkswagen sends to vehicle assembly lines at plants in Chattanooga in the U.S. state of Tennessee and the central Mexican state of  Puebla, and to its Audi subsidiary there.

Volkswagen’s engine plant in Silao began operations in January 2013.

The German company is the fourth-largest producer of light vehicles operating in Mexico, according to the most recent official data.

…Nov, 13, 2020

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