New VW Golf Mk7 for North and South America to be Produced in Mexico from Early 2014

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CEO Martin Winterkorn wants VW to become the world’s number one automotive group by 2018. While the company is currently is Europe’s number one and it has increased its sales in China, Russia and Brazil, in the U.S., despite posting a 31 percent increase in 2012, it trails both General Motors and Toyota.

With its European sales having plunged by 15 percent due to the debt crisis and the market set for another decline in 2013, the sixth in a row, the German group is focusing its push in the Americas.

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VW Group Opens its 100th Plant Worldwide in Mexico, will Build New TSI Engines

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On Tuesday, January 15, the Volkswagen Group cut the ribbon on a new engine plant in Silao in the central Mexican state of Guanajuato. The opening of the factory marks a new milestone for the German automaker as the Silao facility is the group's 100th worldwide plant.

The inauguration ceremony was attended by the President of Mexico, Enrique Peña, the Governor of the state of Guanajuato, Miguel Marquez, and VW Group chief executive Martin Winterkorn.

Engine production in Silao will supply the North American vehicle plants in Puebla, Mexico, and Chattanooga, USA, with the latest generation of TSI turbocharged gasoline engines, including the EA 888 family, a version of which (1.8-liter with 247hp) is featured in the VW Passat Performance Concept that is being displayed at the Detroit motor show.

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Mazda to Boost Capacity at Mexican Plant to 230,000 Units in 2016

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Mazda's upcoming plant in Salamanca, Mexico, is still under construction with a launch date set for March of 2014, yet the Japanese carmaker has already made plans to increase its initial annual capacity from 140,000 units to 230,000 units by March of 2016.

According to the company, the reason why it decided to boost capacity is to accommodate the additional annual production of approximately 50,000 Toyota-branded vehicles built under contract, beginning in the summer of 2015, as well as to cater to the worldwide demand of its new SKYACTIV vehicles.

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Pictures of Cancun, Mexico

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VW Favoring Mexico Plant for North American Golf Mk7, Expected to go on Sale at the End of 2014

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One of the reasons why Volkswagen hasn't officially mentioned anything about the North American availability of the new, seventh generation Golf that was presented at the Paris Motor Show last week, is because it hasn't reached a final decision on where it will produce the compact hatchback for the local market.

Nevertheless, that may change soon as VW CEO Martin Winterkorn told German magazine Automobilwoche, a sister publication of Autonews, that the company is leaning towards its factory in Puebla, Mexico, for the North American production of the new Golf. The same plant also builds the Jetta saloon.

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