On Tuesday, January 15, the Volkswagen Group cut the ribbon on a new engine plant in Silao in the central Mexican state of Guanajuato. The opening of the factory marks a new milestone for the German automaker as the Silao facility is the group’s 100th worldwide plant.

The inauguration ceremony was attended by the President of Mexico, Enrique Peña, the Governor of the state of Guanajuato, Miguel Marquez, and VW Group chief executive Martin Winterkorn.

Engine production in Silao will supply the North American vehicle plants in Puebla, Mexico, and Chattanooga, USA, with the latest generation of TSI turbocharged gasoline engines, including the EA 888 family, a version of which (1.8-liter with 247hp) is featured in the VW Passat Performance Concept that is being displayed at the Detroit motor show.

According to the German automaker, the $550 million plant has been designed for a medium-term annual capacity of 330,000 engines and will directly employ more 700 new workers with further jobs to be created at suppliers and in the service sector.

“The Silao factory is the Volkswagen Group’s 100th plant and therefore represents one of the largest and most international production networks in the automotive industry,” stated Winterkorn. “With this new plant we are driving our ambitious major North American offensive forward. Over the next three years the Volkswagen Group will be investing more than $5 billion in North America alone. Silao is thus also a strong symbol of our uninterrupted growth trajectory and the Group’s continuing internationalization.”

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