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Officially Official: Volkswagen confirms new engine plant in Silao, Mexico

Filed under: Plants/Manufacturing, Volkswagen

Volkswagen has officially announced plans to construct a new powerplant facility in Mexico. Designed to crank out a total of 330,000 engines a year, the Silao plant will cost the company $550 million to build and will bring around 700 jobs to the area. VW says that the new factory is key to its strategy for expansion, and it will help provide engine components for both the new Jetta, which is built in Puebla, Mexico and the company’s New Midsize Sedan (NMS), which is slated to be built in the company’s Chattanooga, Tennessee plant starting in 2011.

The new facility also underscores the VW decision to redouble its focus on the American market. The manufacturer says that the new plant is part of its plan to create vehicles that are more tailored to American tastes in a quest to go after a larger market share.

In addition to having an ample work force, the 60-hectacre piece of land already features transportation options and had been previously developed. The full press release can be found after the jump.

[Source: VW]

Continue reading Officially Official: Volkswagen confirms new engine plant in Silao, Mexico

Officially Official: Volkswagen confirms new engine plant in Silao, Mexico originally appeared on Autoblog on Thu, 23 Sep 2010 17:22:00 EST. Please see our terms for use of feeds.

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Report: Volkswagen building engine plant in Mexico to supply U.S. factory

Filed under: Plants/Manufacturing, Volkswagen

2011 Volkswagen NMS Sketch – Click above to enlarge

Reports streaming out of Mexico indicate that Volkswagen will announce a new plant about 250 miles northwest of the Mexico City in the central Mexican state of Guanajuato. If true, this facility is expected to produce engines for both VW’s new plant in Chattanooga, Tennessee, along with the already up-and-running plant in Puebla, Mexico.

Such an announcement has been expected, as executives from the German automaker have publicly stated that the company will spend $1 billion on additional production facilities in Mexico over the next three years.

The engines from this plant would be destined for North American-bound Volkswagen Jetta sedans and the upcoming New Midsize Sedan that we’ve all been waiting so patiently for over the last couple of years.

[Source: Automotive News – Sub. Req’d]

Report: Volkswagen building engine plant in Mexico to supply U.S. factory originally appeared on Autoblog on Wed, 22 Sep 2010 17:32:00 EST. Please see our terms for use of feeds.

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Report: Despite meeting with governor, Ford set to close Minnesota Ranger plant

Filed under: Truck, Government/Legal, Plants/Manufacturing, Ford

2010 Ford Ranger – Click above for high-res image gallery

According to The Detroit News, Ford officials met with Minnesota Gov. Tim Pawlenty yesterday to discuss the future of the automaker’s St. Paul assembly plant. The facility, which builds Ford’s Ranger compact pickup has been earmarked for closure for some time, but despite the roundtable session, the Blue Oval says it still plans to shutter its operations.

Pawlenty’s administration had been hoping that the signing of a new state law in April allowing the government to offer Ford a series of tax breaks would be enough to keep the Twin Cities operations open, but apparently it wasn’t enough – the plant will close, although an end-date remains uncertain.

Closing the plant will also close the book on the aging Ranger, though Ford has confirmed that the model name will live on with other, larger models in foreign markets. Thus far, rumors of a new North American Ranger (and even an on-air slip by Ford president Alan Mulally) have amounted to nothing, and with Ford committed introducing more economical engines to its F-150 full-size pickup, it appears highly unlikely that a U.S. Ranger will receive an encore any time soon.

[Source: The Detroit News]

Report: Despite meeting with governor, Ford set to close Minnesota Ranger plant originally appeared on Autoblog on Thu, 26 Aug 2010 13:30:00 EST. Please see our terms for use of feeds.

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Report: Tesla to buy old resources from GM, Toyota for NUMMI plant

Filed under: Plants/Manufacturing, Tesla

Tesla Model S – Click above for high-res image gallery

When Tesla struck a deal a few months ago with Toyota to buy the closed NUMMI factory in Fremont, CA, it was made clear that the $42 million price tag only included the building and property. At the time, Tesla officials indicated that most of the equipment previously used to build Toyota Tacomas and Pontiac Vibes was unsuitable for its upcoming products.

Apparently, after going through the available machinery, Tesla did find some items it can use and has reached an agreement with Toyota and Motors Liquidation Company (the remnants of the old, bankrupt General Motors) to buy some of the equipment for a total of $15 million. Tesla has paid $4.6 million as a deposit toward the purchase and will close the deal along with the property purchase. The purchase likely covers generic equipment such as lift trucks, robots and paint equipment.

Gallery: Tesla Model S

[Source: The Street]

Report: Tesla to buy old resources from GM, Toyota for NUMMI plant originally appeared on Autoblog on Mon, 23 Aug 2010 18:00:00 EST. Please see our terms for use of feeds.

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Friends with Benefits: Hyundai shifts Santa Fe production to Kia plant to build more Sonatas

Filed under: Budget, Sedan, Plants/Manufacturing, Hyundai

Straight from HQ at The Department of the Obvious, the 2011 Hyundai Sonata is selling as quickly as Miley Cyrus tickets before Cyrus lost the plot. That’s got Hyundai Motor America shuffling production plans around in order to build enough Sonatas in the U.S., instead of getting them from South Korea.

Hyundai’s Alabama plant produces the Sonata sedan and the Santa Fe, but Santa Fe assembly is being moved to a Kia plant in Georgia where the Sorento is built – easy stuff as they share a platform. With a production capacity of 300,000 cars at the Alabama plant running full tilt, the way things are going, it’s no wonder Hyundai might be looking use all of it.

[Source: Automotive News – Sub. Req.]

Friends with Benefits: Hyundai shifts Santa Fe production to Kia plant to build more Sonatas originally appeared on Autoblog on Mon, 23 Aug 2010 17:33:00 EST. Please see our terms for use of feeds.

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Small car or CUV could be added to Volkswagen plant

Filed under: Plants/Manufacturing, Volkswagen

2011 Volkswagen NMS Sketch – Click above to enlarge

It’s no secret that Volkswagen has ambitious plans for the U.S. market over the next decade. The German automaker has its sights set on a combined one million sales per year (made up of 800,000 VWs and 200,000 Audi vehicles, give or take) by the year 2018. That’s three times as many vehicles as the company sold last year.

Of course, selling more cars in the U.S. means building more cars in North America. Hence VW’s billion dollar investment in a plant in Chattanooga, Tennessee, where the automaker will build the upcoming “New Midsize Sedan” specifically for the American market.

Put down your Little Debbie snack cakes, job seekers – a report from Autoweek suggests that VW has plans in the works to build another vehicle in Tennessee. While we had previously heard that the second model may be an Audi, it now seems as if it may be a VW-badged small car of CUV. The report also indicates that an engine plant may go up alongside the new facility to build engines for North America.

In any case, the value of the U.S. dollar as compared to the euro is likely to have a large impact on whatever decision is finally made.

[Source: Autoweek]

Small car or CUV could be added to Volkswagen plant originally appeared on Autoblog on Mon, 09 Aug 2010 18:27:00 EST. Please see our terms for use of feeds.

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Report: Chrysler delays planned expansion of Toledo plant

Filed under: SUV, Plants/Manufacturing, Crossover, Chrysler, Jeep, Fiat

Jeep

It’s no secret that Chrysler’s future plans are in a constant state of flux right now. After all, the automaker just went through a ridiculously fast bankruptcy where bits and pieces were shed before stewardship was handed over to Italy’s Fiat. It’s only natural that Chrysler’s new management would need some time to get itself organized.

According to The Toledo Blade, Chrysler decisionmakers are still up in the air as to how the Toledo North Assembly Plant figures into the company’s future roadmap. Previously, Chrysler said the Ohio facility would build three new SUVs based on Fiat’s C-Evo platform to replace the Jeep Liberty and Dodge Nitro.

Apparently, however, Chrysler has three plants that could build the new ‘utes – Toledo, Belvedere, Illinois and Sterling Heights, Michigan. The reality is that the Pentastar really only needs two of them to handle the project. Alternately, all three could build the vehicles using fewer shifts. At this point, it’s anyone’s guess which, if any, of these facilities will be left out in the cold, and what the resulting employee impact will be.

[Source: The Toledo Blade]

Report: Chrysler delays planned expansion of Toledo plant originally appeared on Autoblog on Sun, 18 Jul 2010 14:02:00 EST. Please see our terms for use of feeds.

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