Mexico competes with US plants for new VW vehicles

If the Volkswagen plant in Chattanooga, in the United States, lands the production of a new midsize sport utility vehicle, it will likely have to battle Mexico to do so.

Mexico is hot when it comes to vehicle assembly with a variety of automakers ramping up production to take advantage of lower costs, an array of suppliers and free trade agreements.

In fact, VW last year chose Mexico for its first North American Audi production plant, and it is building an engine plant there.

VW already has a production plant in Mexico that assembles about 600,000 vehicles a year.

Source: Times Free Press