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Volkswagen to invest $118m in Mexican engine plant

ABR Staff Writer Published 11 November 2013

Volkswagen de Mexico, a Mexican subsidiary of German automaker Volkswagen Group, is set to invest $118m to commence the second stage of its engine plant in Guanajuato Puerto Interior industrial park, Mexico.

Volkswagen engine plant

The latest funding will be used to produce new components that will be used in a new version of the EA888 turbocharged and direct-injection TSI engine.

The investment will enable the company to produce a new variable camshaft system that improves the performance of the engine and reduces CO2 emissions.

As part of the expansion, Volkswagen will employ new processes for the manufacture of camshaft components, such as complex state-of-the-art technology such as electro-chemical machining and laser surface structuring.

The project will expand the 120,000m² of buildings already constructed by an additional 37,000m². The construction will start immediately and will continue during 2014.

The carmaker will install machinery and setup in January 2015 and plans to commence the production of the new engine in the first quarter of 2016. This expansion will create 150 new jobs in the region.

Inaugurated in January 2013 with a $550m investment, the Volkswagen engine plant is capable of producing 330,000 engines annually. The plant supplies 1.8l and 2.0l TSI engines to Volkswagen automotive plants located in Puebla and Chattanooga. As of September 2013, the plant has 600 employees.____________________________________________________________________________________________________________________

Image: Volkswagen is investing $118m to manufacture new components in México. Photo: courtesy of Volkswagen Group of America, Inc.