Volkswagen is a global powerhouse and leader in automotive manufacturing.
As the €250 billion company it is, the organisation has many subsidiaries that sit under the behemoth’s brand. Volkswagen de Mexico is the group’s Mexican arm and is headquartered in Puebla City. Founded in 1964, the firm’s first automobile rolled off the production line three years later in 1967. Today, VW Mexico is Volkswagen’s second biggest plant globally after Wolfsburg in Germany.
Inside the Puebla plant
Volkswagen has been involved in manufacturing in Mexico for almost 60 years. But in the first four decades, the plant focused on just one model – the Beetle – which was manufactured in vast quantities. However, in 2003, the decision was made to increase the range of models produced and the factory now assembles the Jetta, the Golf, the Golf SportWagen and the Tiguan Long Version, as well as the classic Beetle and Beetle Cabriolet.
The corporate offices of Volkswagen de México, as well as the vehicle plant, are located in the State of Puebla, 120 km southeast of Mexico City. In January 2013, in Silao, Guanajuato, the Guanajuato Engine Plant began operations. In 2022, Volkswagen de México produced 301,865 vehicles. With more than 55 years of production, the Volkswagen de México vehicle plant is one of the largest in the Volkswagen Group. In this factory, the Jetta, Tiguan, long version and Taos models are produced in three different segments.
The Puebla plant has all the necessary processes for the manufacturing of vehicles, from stamping to final assembly. The Guanajuato Engine Plant is located on an area of 60 hectares. This factory produces the EA211 engine and the third generation of EA888 engines. The Volkswagen Group markets the Volkswagen, Volkswagen Commercial Vehicles, SEAT, CUPRA, Audi, Bentley and Porsche brands in the Mexican Republic. In 2022, these brands delivered 109,136 light vehicles to their customers.
Overcoming challenges
Today, over 80% of the factory’s creations are exported, with the list of customers totalling more than 120 different countries globally. Volkswagen’s Puebla cars are sold to all the worldwide economy’s main automobile markets, including Africa, Europe and the Americas. With a strategic location armed with ready access to both the US and Canadian markets, as well as the Latin and South America space, VW de Mexico has become renowned as an industry heavyweight.
The VW Group has set up a decalogue of key elements to overcome purchasing challenges. These are supply chain resilience, sustainability, digitalisation, regionalisation, partnership, people, costs and new projects.
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