Volkswagen Will Produce Electric Cars In Mexico

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Tesla may have postponed its plans to produce electric cars in Mexico, but Volkswagen is stepping in to fill that hole. Volkswagen is now saying that it will build electric cars down in Mexico. Naturally, it could end up that Tesla and Volkswagen start EV production at around the same time. And the more EVs, the merrier! In fact, if various automakers start producing electric cars in Mexico, a good workforce with EV expertise and a good supportive supply chain and economy could help to make EV production cheaper and more appealing in the country.

The news from Volkswagen is not hard news from a press release but rather statements from an executive down there, and no EV is popping out of a factory there in the next year or two. Holger Nestler, President & CEO of Volkswagen de México, told Forbes Mexico that the Volkswagen factory in Puebla will get two big investment injections, the first one with a value of about $750 million, and the second one more focused on production of the new EV model.

“What about electric vehicles in Mexico, are we going to produce them or not? Of course we are, but first we have to start with a transformation of the industry, here in Mexico we are precisely in that process, where we are making different changes in Volkswagen Mexico,” he says. “We also have a project that will lead us to a vehicle that eliminates fossil energy or even gas energy, it will be an electric vehicle, but with renewable energy. By the end of 2024 we will have this renewable energy option, which will be much more sustainable and cleaner for our entire planet.” Vague statements, but in the right direction.

More details will come in the first quarter of 2024, including details about the second investment package and the electric vehicle that will be built at the Puebla factory. The EV model will reportedly be unveiled in 12–15 months. The electric vehicle will be produced for Mexico, the US, and Canada.

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