VW PueblaMexico – The funds will go not only towards extending and modernising the production facilities but acquiring tooling to make components at suppliers. The upgrade is for the manufacture of a new, three-row Tiguan, with capacity for 500 units per day.

New lines will be installed and VW says there will be a “high level” of automation in the bodyshop, with “advanced programming and control systems”. A total of 90,000 sq.m will be added to the site, and 2,000 workers will be involved in Tiguan production. According to VW, Puebla’s expansion for the new SUV continues a “strategy of technological upgrading” which started with manufacture of the new Golf on the Modular Transverse Matrix (MQB).

“Localisation has become key to safeguarding our competitive position on the global market and manufacturing the Tiguan in Mexico will bring production closer to the US market,” said Michael Horn, president and CEO of Volkswagen Group of America. “With production of the Golf A7 and the Tiguan now moved to Puebla, we will build approximately 90% of our products in the NAFTA region.”

The new Puebla facilities of Volkswagen de México will supply the Americas and other markets, excluding the EU and China.