VW to Increase Jetta Production in Mexico

VW recently announced it plans to increase production of the Volkswagon Jetta to 320,000 cars at its Mexico plant in 2005, about 90,000 more units than this year. "Hurt by slow sales in the United States, Volkswagen's Mexican arm produced 20 percent fewer autos this year than in 2003, when its plant outside the colonial city of Puebla built 287,000 units, stated Thomas Karig, Volkswagen's cooperate relations director.

"The new VW Jetta, branded as the VW Bora in Mexico, will be produced in a new section of the Puebla plant, where workers will be assembling parts from Brazil, Karig continued. "Production of the overhauled Jetta will account for 200,000 of cars the Puebla plant will produce in 2005." Volkswagen's only North American assembly plant, has 13,300 workers and is also the only place where the new Beetle sedan and convertible are assembled. About 70 percent of the cars are exported.

"VW has been producing about 70,000 new Beetles per year and will try to maintain that level, said Karig. Puebla is the only assembly plant outside of China that makes the new Jetta model, which will be replacing the older model everywhere but in Mexico. In November 2004 the Puebla facility shut down entirely so VW could lower inventories and prepare for assembly of the new Jetta.

Karig said "The euro's rise against the dollar gives the company a chance to take greater advantage of the facility Mexico."