Archive for February, 2008

Volkswagen’s Billion Dollar Plant in Mexico

Sunday, February 3rd, 2008

As part of Volkswagen’s group growth strategy, the German enterprise will invest a huge amount of money for an assembly plant in Mexico. Volkswagen’s Worldwide President, Martin Winterkorn, had given this announcement and said that they are planning to do the investment in the next two years. He had said that this is a significant and important step for the future. With Pueblo, Mexico as their only plant in North America, they have not yet decided exactly where in North America they will be building their new plant. “It could be in Mexico. It could be in the United States. It could be in Canada,” Winterkorn said. The one billion dollar investment in Mexico was for the purpose of increasing the output of Volkswagen’s current plant, to be more specific: the Jetta and Bora models.

Volkswagen remains to be one of Mexico’s most eminent employers, having sixteen thousand people employed in Puebla, eleven thousand more where the auto-supplier industry is concerned and around ten thousand in the company’s dealership network within the country. Nevertheless, Volkswagen is still concerned regarding the progress of Mexico’s domestic department, which is quite disappointing. Winterkorn said, “The negative influence of used car imports from the U.S. can’t be ignored.”

Mexican President, Felipe Calderon, stated that he had delivered a decree to manage the second-hand automobile market and to “reduce the unfair competition suffered by the Mexican automobile industry.” With this decree, the maximum age of imported automobiles which are legal was reduced from fifteen to ten years. This also subjects the vehicles to the full-standard value-added tax, unlike the previous cut down rate.

source: indiaenews.com

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