
Volkswagen has just celebrated building 10 million vehicles and 11 million engines in Mexico, according to a company statement. The 10-millionth vehicle was a Volkswagen Beetle GSR destined for the US. Inspired by the 1970s Beetle, the GSR is a limited edition on sale in August in the US. Jonathan Browning, president of Volkswagen America, said: "It's only fitting that the milestone car is a Beetle in light of this being the 75th anniversary of the car. Puebla has been manufacturing quality Beetles and other Volkswagens for the United States for nearly 50 years, and continues to play a key role in our growth strategy." Volkswagen says that the Puebla facility is the largest automobile manufacturing plant in North America and the second-largest Volkswagen plant worldwide. The Puebla plant started manufacturing the original Beetle in 1967, and has since built more than 3 million of them. Currently building the Classic Jetta (A4), Golf Variant (Jetta SportWagen for US buyers), Beetle (coupe and convertible) and New Jetta (A6), production of the next-generation Golf will begin there in early 2014, supplying North and South American markets. Volkswagen began Mexican production in 1964 at a plant in Xalostoc, Mexico State, building the original Beetle.
Significance: Volkswagen established Mexican production almost fifty years ago and continues to invest and grow their manufacturing presence in the region. Audi has announced a new plant in Mexico for the next Audi Q5 and a 4-door coupe version expected to be called Q6. The IHS Automotive production forecast anticipates assembly of the next-generation VW Tiguan will be added at Puebla #1 in 2016 as well. Automotive production investment in Mexico has been heating up, including increases in investment from automakers already established in Mexico as well as investment from automakers and suppliers. Investment is coming from mainstream brands such as GM , Honda, Mazda and Nissan as well as luxury makers BMW and Daimler. Supplier investments are increasing as well. Automakers are taking advantage of lower wages, an increasingly skilled workforce and favorable trade pacts with North and South America.