February 4, 2008 -- German car maker Volkswagen AG (VW) plans to invest roughly $1.0 bln (675 mln euro) in Mexico in the next three years, CEO Martin Winterkorn announced on February 4, 2008.

The sum will be used to build up the VW Jetta model production line and to optimise the capacity of the factory in Puebla, central Mexico. Being VW's only production site in North America, the Puebla plant has a pivotal role in the group's growth strategy on the continent. Therefore, the current investment programme will be of benefit for both the local subsidiary Volkswagen de Mexico and the Mexican car component industry in general, Winterkorn said.

At 1032 CET VW's share had lost 0.69 pct to 150.43 euro ($222.89) in floor trading on the Frankfurt Stock Exchange (FSE). On the bourse's electronic order-matching system Xetra, the share was down 0.54 pct to 150.68 euro ($223.26) at 1035 CET.

Source: German News Digest