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2011 Volkswagen NMS Sketch – Click above to enlarge

Reports streaming out of Mexico indicate that Volkswagen will announce a new plant about 250 miles northwest of the Mexico City in the central Mexican state of Guanajuato. If true, this facility is expected to produce engines for both VW's new plant in Chattanooga, Tennessee, along with the already up-and-running plant in Puebla, Mexico.

Such an announcement has been expected, as executives from the German automaker have publicly stated that the company will spend $1 billion on additional production facilities in Mexico over the next three years.

The engines from this plant would be destined for North American-bound Volkswagen Jetta sedans and the upcoming New Midsize Sedan that we've all been waiting so patiently for over the last couple of years.

[Source: Automotive News – Sub. Req'd]

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    • 1 Second Ago
      • 4 Years Ago
      I thought the whole Mexico thing didn't turn out well for VW
      • 4 Years Ago
      How's that NAFTA working out for you, American Worker?
        • 4 Years Ago
        American worker: 'Horribly...thanks for asking.'
      • 4 Years Ago
      Any word on weather they'll be building the 4 cylinder TDI there?
      • 4 Years Ago
      So far our VW has had faulty valve springs clips installed in Mexico (Installed backwards!?). Lucky we have insurance, but that is lame...

      Me and the misses will avoid VW from here on.
      • 4 Years Ago
      Ok, VOA says that it couldn't compete with Asian nameplates making cars in the US when VW was using Mexican and supposedly cheaper labor. Now they are going to make a cheapened version of the Jetta in the US using Mexican engines whose design is offered in only a few other markets because of its anemic output and vibration. VW expects success with this strategy? What did they do, dig up some of the stiffs from New Stanton for strategic advice? Is China sucking up all of the varsity players and the US is getting the scrubs?

      Perhaps they should copy the Koreans - good design, competent powertrains and great value. VW has in Germany the design and engineering talent and in Mexico a capable and economic manufacturing plant. What pieces of the puzzle were missing? Oh, I forgot about customer oriented dealers. Well 2 out of 3 is not bad. And how is the new American plant going to fix the dealer issue?

      Side note: good dealers can be turned into bad dealers when the factory rejects warranty claims in arrears (after the service has been delivered) causing the dealership to loose money on the deal. Sometimes a full audit will result in hundreds of thousands of dollars of claims which are rejected. That would make anybody grumpy. Go talk to the service writers at the premium brands; they generally speak of generous terms from the factory and frequent "good will" service delivered. VW service writers sound like a doctor's insurance clerk; they often get clearance before they start the work. The delay automatically makes the customer unhappy and even more so if the warranty claim is denied. VW loaner cars? In most cases your lucky if you can get a ride to the rental center and the Corolla will be on your nickel. Other nameplates? Most often just grousing that they don't give you a loaner the same as you are having serviced. As a longtime VW fan (dune buggy, 68 sedan, 77 rabbit and 94 Jetta) I truly love the brand but I remain perplexed at a company that once had a death grip on the US import market with a 90% share. Sure that was a long time ago but it must of taken a lot of smart guys to seize and maintain that market share. Now I don't know who to blame Moe, Curly or Larry?
      • 4 Years Ago
      So what are they going to call it? The Volkswagen Delusion?

      /in honor of ferdinand piech
      • 4 Years Ago
      when the engines arrive in Tenn, the oil pans will be attached w/only 2 bolts, so as to more easily access the kilos of coke.