In the latest sign that Volkswagen Group is determined to compete head-on in the vital U.S. market, the auto maker confirms plans to build a new engine plant in Mexico. The $550 million project, located in the central city of Silao, will enable output of 330,000 engines annually as VW chases its goal of 1 million U.S-market sales by 2018. Production, scheduled to begin in 2013, will support VW assembly plants in Puebla, Mexico, and Chattanooga, TN. “This investment is yet another signal ...

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