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Volkswagen has officially announced plans to construct a new powerplant facility in Mexico. Designed to crank out a total of 330,000 engines a year, the Silao plant will cost the company $550 million to build and will bring around 700 jobs to the area. VW says that the new factory is key to its strategy for expansion, and it will help provide engine components for both the new Jetta, which is built in Puebla, Mexico and the company's New Midsize Sedan (NMS), which is slated to be built in the company's Chattanooga, Tennessee plant starting in 2011.

The new facility also underscores the VW decision to redouble its focus on the American market. The manufacturer says that the new plant is part of its plan to create vehicles that are more tailored to American tastes in a quest to go after a larger market share.

In addition to having an ample work force, the 60-hectacre piece of land already features transportation options and had been previously developed.

Officially Official: Volkswagen confirms new engine plant in Silao, Mexico originally appeared on Autoblog on Thu, 23 Sep 2010http://www.autoblog.com/2010/09/23/officially-official-volkswagen-confirms-new-engine-plant-in-sil/
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