Volkswagen recently celebrated the production of the 10 millionth car from its Puebla facility. The car, a Volkswagen Beetle GSR, is a model that will arrive in the U.S. this month. Volkswagen's factory is the largest automobile manufacturing plant in North America, according to The Auto Channel, with approximately 18,350 employees. The company has been manufacturing in Mexico since 1967.
"This is an important milestone and symbol of Volkswagen's long-term commitment to the North American market," said Jonathan Browning, president of Volkswagen of America, Inc. "It's only fitting that the milestone car is a Beetle in light of this being the 75th anniversary of the car. Puebla has been manufacturing quality Beetles and other Volkswagens for the United States for nearly 50 years, and continues to play a key role in our growth strategy."
Volkswagen has more than $5 billion in investments planned in Mexico and the United States over the next three years, according to The Auto Channel. The company plans to expand further into the North American market from the ideal location of Mexico. Many automobile companies choose to manufacture in Mexico. Some, like Volkswagen, accomplish the production of a car from beginning to end in the country. Others take advantage of shelter companies to complete certain tasks in the country.
The advantages of this strategy are numerous. A clear benefit is that Mexico borders the U.S., a large market for passenger vehicles. Companies based outside of North America that wish to penetrate the market do well in expanding to Mexico. It is a place with low manufacturing costs and a very favorable exchange rate, but gives companies many opportunities to produce quality products. Many industry leaders and top-tier suppliers choose to manufacture automobiles in Mexico, not only Volkswagen. The success these manufacturers have experienced with this decision indicates manufacturing in Mexico is a smart business choice.