B7 Passat Could Be Built in Mexico for North American Market
Posted by Lorenzo at 11:20 am
Text from Forbes.com.
FRANKFURT (AFX) - Volkswagen AG is considering building its Passat model for North America in Mexico instead of Germany, Automotive News Europe said, citing an interview with VW production head Reinhard Jung.
Jung said the move would be a natural hedge against continued euro-dollar currency fluctuations.
'We face day-to-day exchange rate costs that we simply can't ignore,' said Reinhard Jung.
VW builds the upper-medium Passats at two German plants and exports them to the US. The sedan and station wagon are assembled in Emden. Some Passat sedans also are built in Mosel.
Jung said VW is considering the switch in production in time for the next generation of Passat, which is due by the end of the decade.
FRANKFURT (AFX) - Volkswagen AG is considering building its Passat model for North America in Mexico instead of Germany, Automotive News Europe said, citing an interview with VW production head Reinhard Jung.
Jung said the move would be a natural hedge against continued euro-dollar currency fluctuations.
'We face day-to-day exchange rate costs that we simply can't ignore,' said Reinhard Jung.
VW builds the upper-medium Passats at two German plants and exports them to the US. The sedan and station wagon are assembled in Emden. Some Passat sedans also are built in Mosel.
Jung said VW is considering the switch in production in time for the next generation of Passat, which is due by the end of the decade.
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