PUEBLA, Mexico Jan 14 Most of the $7 billion
that German carmaker Volkswagen AG will invest in
North America over five years will go to Mexico, the company's
chief executive said on Tuesday.
"Most of it will be invested in Mexico for a new plant for
Audi, investment for our new products ... and some of it will go
to the United States," CEO Martin Winterkorn said in the central
Mexican city of Puebla, where the company has a major plant.
The company also said it might consider selling its Amarok
pick-up truck in North America, just days after it announced it
would build a new SUV in the region.
"No decision has yet been taken but we are closely observing
the pick-up market in order to analyze whether it would benefit
our company or not," Winterkorn said when asked whether the
Amarok would come to North America soon.
Volkswagen announced the $7 billion investment figure in
Detroit on the eve of the North American International Auto
Last year, executives laid the foundation stone in Mexico
for an assembly plant for Audi, the premium brand of Volkswagen,
Europe's biggest automaker.
With numerous free trade agreements, a cheap, well-educated
labor force and proximity to the lucrative U.S. auto market,
major automakers have been lining up in recent years to set up
shop in Mexico.