Canadian Manufacturing

Volkswagen investing $118M, expanding Mexico engine plant

Facility in Silao, Mexico, produces automaker's turbocharged EA888 2.0-litre TSI engine

SILAO, Mexico—Volkswagen is investing another $118-million in its engine plant in central Mexico, the automaker announced.

The, located in the Guanajuato Puerto Interior industrial park in Silao, Mexico, produces Volkswagen’s turbocharged EA888 TSI engine used in a host of Volkswagen and Audi models.

Volkswagen said the new investment will be used to equip the plant to manufacture new components to be used in the next generation of the 2.0-litre four-cylinder motor, including a new variable camshaft.

As part of the plant expansion, Volkswagen will implement new processes for the manufacture of camshaft components, including complex state-of-the-art technology such as electro-chemical machining and laser surface structuring.

The engine plant, which opened in January 2013 after a $550-million investment, employs 630 people and has an annual production capacity of 330,000 1.8- and 2.0-litre TSI engines that are sent to assembly facilities in Puebla, Mexico, and Chattanooga, Tenn.

The expansion will add approximately 400,000 sq. ft to the existing 1.3 million sq. ft. plant.

According to Volkswagen, the expansion will add 150 new jobs.

Construction is scheduled to start immediately, and will continue through 2014.

Machinery installation and setup will begin in January 2015.

Production of the new engine and related components will launch in the first quarter of 2016.

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