VW to start Golf production at Mexican plant in 2014

Part of the German automaker's plan to invest more than USD5 billion in the United States and Mexico over the next three years.

Volkswagen (VW) plans to start Mexican production of its seventh-generation Golf hatchback in the first quarter of 2014, reports the Detroit News. The model will be assembled at VW's Puebla assembly facility which currently produces the Jetta sedan and Jetta SportWagen in addition to the New Beetle. The move is part of the German automaker's plan to invest more than USD5 billion in the United States and Mexico over the next three years. The model produced at the Mexico plant will be shipped to North and South American markets. "Localisation has become increasingly important in automotive manufacturing as a way to safeguard against currency fluctuations and to be closer to the market in which the manufacturer sells," VW said in a statement.