Volkswagen Mexico has announced a significant change in its production strategy. Previously, the plant focused on manufacturing engines for export to other facilities outside Mexico, but now the focus will be exclusively on the North American market. According to Holger Nestler, president and CEO of the company, starting in 2025, between 95 and 97 percent of the vehicles produced in Mexico will remain in the North American region.
Nestler explained that they are making significant investments in Mexico, being the first market where they are installing a sustainable painting plant, with an investment of 400 million dollars in the facilities in Puebla. This focus on North America is due to the good results and growth that the region has shown for the Volkswagen group as a whole.
While sales in Europe have declined significantly, in Mexico, the United States, and Canada the story is different. Mexican VW production, which was previously exported to Europe and Asia, will now focus exclusively on the T-MEC markets. This decision is part of the brand's global strategy, which focuses on five major clusters: Europe, Central Europe, Asia, South America, and North America.
Volkswagen's success in the region is attributed to its vehicle portfolio, specially designed for the U.S. market. This regional approach has proven to surpass risks and become a prosperous area, despite Chinese competition and the situation in the European market.
Despite difficulties in Europe, the brand has seen a 24 percent growth in sales and is expected to close one of the best years in terms of business performance. On the other hand, the VW Group in Germany announced a tough savings plan that contrasts with the positive results achieved in North America.
Volkswagen is working in regions instead of countries, recognizing the potential this has to face challenges and seize opportunities in a competitive environment. The focus on North America and the adaptation of its export strategies show a commitment to strengthening its presence in the region and maintaining sustainable growth in the future.
