Investments of $1 billion have been earmarked for Mexico through 2013.

“The choice of location has not been finalized yet, but a decision will be taken soon. Mexico is one possible option,” Heizmann said.

Puebla, which will manufacture over half a million vehicles every year, will start building the next-generation Beetle in 2011.

The factory is VW’s largest in the Americas and one of the largest worldwide. An engine plant in Mexico close to Puebla is therefore considered the most logical choice for a location in North America.

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On the heels of its L1 and Up! Lite concepts—which debuted at the recent Frankfurt and Los Angeles auto shows, respectively—Volkswagen is introducing another concept at the Detroit auto show that moves a small hybrid from the German brand closer to reality. More important, however, is that the latest show car previews the look of the next-generation Jetta, set to begin production later this year.
Called the New Compact Coupe, or NCC, the concept follows the developmental naming convention of the upcoming Jetta and Passat replacements, the NCS and NMS—for New Compact Sedan and New Midsize Sedan. Indeed, it sits on a platform sized within an inch or two of the current Jetta’s in every dimension, at 178.5 inches long, 70.1 inches wide, and 55.6 inches tall, with a wheelbase of 104.4 inches. The NCC seats four and boasts 13 cubic feet of trunk space.

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