VW plans to build plant in Mexico

Auto manufacturer Volkswagen AG is to build a plant in Mexico to assemble annually 2,000 trucks and buses from parts and components made in an existing VW factory in Resende, Brazil.

The company said that the production site location has not yet been decided but construction is planned to begin at the end of this year.

Production is planned to begin in mid-2004, with local components coming from engines made by the Mexican unit of Cummins Latin America.

VW said the Mexican market for heavy commercial vehicles has an annual volume of about 19,000 units, making it the second most important market in Latin America after Brazil.