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VW May Build More Cars In North America
Nov. 14, 2007

VW May Build More Cars In North America
New Beetles being assembled in Puebla, Mexico. Click on image for larger view.

Volkswagen may build more cars in North America, the automaker announced today.

"We are currently investigating the feasibility of additional North American production capacity," said Stefan Jacoby, Volkswagen Of America's CEO. "There are a number of factors that we need to consider in this decision and we will make an announcement in the next six months on whether or not we will proceed with this initiative."

VW may be looking at beefing up its Puebla, Mexico factory, its only production facility in North America, where the Jetta and New Beetle come to life.

More likely though, VW may be investigating the construction of a new factory, perhaps in the United States or Canada. Numerous foreign automakers already have factories sprinkled throughout these two countries.

Additional North American production capacity would allow Volkswagen to build and sell vehicles here more competitively — mostly by better protecting the company from currency fluctuations but also by cutting costs on transporting vehicles across the ocean. Many VWs are built overseas and shipped including the Touareg (Slovakia), Eos (Portugal), as well as the GTI, Passat and upcoming Tiguan (all in Germany).

More North American capacity could be a big piece to Volkswagen Of America's restructuring puzzle that it is currently putting together.

Volkswagen briefly built vehicles in the USA from 1978 to 1988 — the Rabbit was produced in a factory in New Stanton, Pennsylvania.

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