Volkswagen (VW) announced yesterday (7 November) a USD118 million investment to expand its engine plant in Silao, Guanajuato, Mexico, to make components for a new configuration of the EA888 engine. This is the second stage of plant development, and the components will be used for the turbocharged and direct-injection TSI engine. Specifically, the factory will be able to produce a new variable camshaft system that improves performance and reduces CO2 emissions. New processes for manufacturing camshaft components, including electro-chemical machining and laser surface structuring. Civil engineering work will begin immediately, with production of the new engines scheduled for the first quarter of 2016. The USD550 million plant opened in January 2013, with annual capacity of 330,000 engines. The expansion adds 37,000 square metres to the existing 120,000 square metres.
Significance: The EA113/827/888 platform is VW's highest-volume range of gasoline engines for the North America market. VW will build the 1.8-litre and 2.0-litre EA888 engines at its new engine plant in Silao, Mexico. These engines feature turbocharging and direct injection (DI) technology. These engines are replacing the demand for the 2.0-litre L4 and 2.5-litre L5 engines currently produced in Puebla, Mexico. Production for the new engine line has already started with initial capacity for approximately 350,000 engines per year although volumes could reach as high as 500,000 per year in 2014; the investment announced today is not likely to increase overall engine capacity.
