German legacy automaker Volkswagen has just confirmed plans to produce all-electric vehicles in its existing Puebla factory, local media Mexico Now reports, citing an exclusive interview of Forbes Mexico with a company executive.
Announcement details
The announcement did not come from an official press release but from Volkswagen de México President and Chief Executive Holger Nestler’s remarks in the said interview.
According to Mr. Nestler, Volkswagen’s Puebla factory will gain two major investments to support the planned production in the country. The first investment apparently costs approximately $750 million, while the second will concentrate on new electric car production. Of that total, $350 million will fund the development of the new paint shop.
“What about electric vehicles in Mexico, are we going to produce them or not? Of course we are, but first we have to start with a transformation of the industry, here in Mexico we are precisely in that process, where we are making different changes in Volkswagen Mexico.”
Holger Nestler, President & CEO of Volkswagen de México
Renewable energy-based manufacturing
Apart from the planned EV production in Mexico, Volkswagen also plans to adopt renewable energy in its operation to shift away from polluting fossil and gas energy. It is part of the company’s efforts to retool its existing factory to equip it with innovative technology, including a water treatment plant.
It will apparently aid the company in developing new EV models in the following one to three years.
“We also have a project that will lead us to a vehicle that eliminates fossil energy or even gas energy, it will be an electric vehicle, but with renewable energy. By the end of 2024 we will have this renewable energy option, which will be much more sustainable and cleaner for our entire planet.”
Holger Nestler, President & CEO of Volkswagen de México
Volkswagen EV initiatives
Volkswagen continues to advance its electrification efforts as it aims to compete with industry leaders like Tesla, which recently delayed plans for its new Gigafactory Mexico.
The German company recently announced plans to transition as an all-electric brand in the Norwegian market as early as next year. EV-a2z also reported its recent battery parts plant in Poland through its PowerCo business unit to produce cathode active materials (CAM), with a target of 160 GWh annual production capacity by 2030.
Going back, Volkswagen is expected to release more details about the plans in Q1 2024, including the vague second investment injection and the particular model that will undergo production at the Puebla plant. According to CleanTechnica, the upcoming model will debut in 12 to 15 months in various markets, including Mexico, Canada, and the US.
All that said, Volkswagen’s plans to expand its EV production in Mexico demonstrate its commitment to innovate its models and manufacturing processes.
