Volkswagen executives will hand down a decision on where to build additional Golf compact hatchbacks in a few weeks’ time.
Perhaps less than the most exciting news Volkswagen is producing these days, but depending on the result it could be important for the North American market. The Jetta costs more than the Golf – it’s hatchback counterpart. That doesn’t make sense until you realize that one is built domestically and the other abroad. Volkswagen is likely to announce that further manufacturing will take place at its Pueble, Mexico plant.
If additional production moves to North America, the cost of a new Golf could drop, putting it more in line with both the Jetta and possibly the rest of the world market’s preference.
Most recently, VW started manufacturing the Passat in Chattanooga, an operation that proved to be fruitful, but the plant won’t be able to accomodate the Golf.
“Chattanooga has exhausted its capacity,” VW CEO Martin Winterkorn said. “If we expand there, an SUV that ends up roomier than the Tiguan would have a good shot.”
If VW moves as expected, Golf production in Mexico would probably begin at the end of 2014 or early 2015.
[Source: Automotive News]