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]