Volkswagen has just announced it will build a US$550 million petrol engine plant in Mexico next month, which the company says should be up and running by 2013. The new plant is designed to have a capacity of 330,000 engines per year.
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The new plant will be built in the Mexican city of Silao to supply engines to a vehicle assembly plant which is stationed 120km up the road, in Puebla. Around 700 workers are expected to be hired to run the plant and will be building engines that pass US emission regulations that will be set for 2013.

A Volkswagen spokesman recently said in an Automotive News report,

"For more than 40 years, the Puebla assembly plant has been one of the Volkswagen Group's largest production sites. Our decision to establish a second production unit in Mexico [away from Puebla] was necessary to continue our strategy of growth in the region."

US-sold Volkswagen Jettas are assembled in the Puebla plant, as well as other models which are then sold only in parts of Mexico and other parts of Latin America. Cars such as the new 2012 Volkswagen Beetle are also expected to be built in the Puebla plant.