By Stocksak, Volkswagen and Continental announce Mexico investments worth nearly $1Billion

© Stocksak. FILE PHOTO A Volkswagen logo is found on a German automaker’s car in Sydney, Australia, 8/10/15. REUTERS/David Gray/File Photo

MEXICO CITY – Mexican auto manufacturers Volkswagen (ETR.) and Continental pledged significant investments in Mexico on Thursday. It was the largest single-day announcement of this magnitude by the current government.

Volkswagen announced that it will invest $763.5 Million between 2022-2025 in its Puebla complex, which is one of the largest Volkswagen facilities worldwide, to build a new paint factory and begin production of a new gasoline-powered vehicle.

The company, which currently produces Jetta, Taos, Tiguan models at the factory, did not reveal which car it would add.

It stated that the paint plants would be powered entirely by wind turbines.

Earlier in the day, Continental AG (OTC) a German auto parts manufacturer stated that it would invest approximately 210 million euros ($209.16million) to open a new factory for automotive electronics and expand the capacity of an existing brake component plant in Guanajuato.

It stated that both projects are close to completion and openings are expected in the first quarter of next year.

Continental stated that it expects to create more than 1,500 jobs in the next three-years through expansion.

General Motors (NYSE) is another large auto company that is pumping money into the country. It announced last year a $1 billion investment in its Ramos Arizpe facility, where it will start making electric vehicles by 2023.

Nissan (OTC: ) announced in May that it would invest $700 million over the next three year.

Stellantis, the maker of Jeeps, is also reported to be looking for billions to produce electric vehicles in Mexico. Elon Musk, chief executive at Tesla (NASDAQ:), is also said to be considering investing in the northern part of the country, according to Stocksak.

($1 = 1.0040 euros)

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