SOURCE: Volkswagen Group of America

Volkswagen Group of America

November 07, 2013 14:00 ET

Volkswagen Increases Its Investment in New Silao Engine Factory

An Additional $118 Million Commitment Is Made to Manufacture New Components and Diversify the Engine Range Produced in Mexico

SILAO, MEXICO--(Marketwired - Nov 7, 2013) - Volkswagen de Mexico today announced a new investment of $118 million to mark the start of the second stage of its engine plant located in the Guanajuato Puerto Interior industrial park. The additional funding will be used to manufacture new components that will be used in a new version of the EA888 turbocharged and direct-injection TSI® engine.

The announcement was made at an event presided by the Governor of Guanajuato, Miguel Márquez, in the company of Dirk Grosse-Loheide, Executive Vice President for Purchasing North America at Volkswagen de México, and Andreas Klinge, Director of the Volkswagen Engine Plant in Silao.

With this investment, the factory will be able to produce a new variable camshaft system that improves the performance of the engine and reduces CO2 emissions. As part of the expansion, Volkswagen will implement new processes for the manufacture of camshaft components, including complex state-of-the-art technology such as electro-chemical machining and laser surface structuring.

The expansion will add 37,000 square meters to the 120,000 square meters of buildings already constructed at the plant. The construction will start immediately and will continue during 2014. Machinery installation and setup will begin in January 2015. The production of the new engine will begin in the first quarter of 2016, generating 150 new jobs.

The Volkswagen engine plant was opened in January 2013, the result of a $550 million investment. Its annual production capacity is 330,000 engines, and it supplies efficient and modern 1.8- and 2.0-liter TSI engines to Volkswagen automotive plants located in Puebla and Chattanooga. As of September 2013, the plant has 630 employees.

About Volkswagen of America, Inc.
Founded in 1955, Volkswagen of America, Inc., an operating unit of Volkswagen Group of America, Inc. (VWoA) is headquartered in Herndon, Virginia. It is a subsidiary of Volkswagen AG, headquartered in Wolfsburg, Germany. VWoA's operations in the United States include research and development, parts and vehicle processing, parts distribution centers, sales, marketing and service offices, financial service centers, and its state-of-the-art manufacturing facility in Chattanooga, Tennessee. The Volkswagen Group is one of the world's largest producers of passenger cars and Europe's largest automaker. VWoA sells the Beetle, Beetle Convertible, Eos, Golf, GTI, Jetta, Jetta SportWagen, Passat, CC, Tiguan, and Touareg vehicles through approximately 600 independent U.S. dealers.

This press release and images of the Silao factory are available at Follow us @VWNews

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