German carmaker Audi will invest one billion euros ($1.08 billion) in electric vehicle projects in the Mexican state of Puebla, the state’s governor said on Tuesday.
The investment will lead to the creation of 500 new jobs, the Puebla government said in a statement.
Audi Mexico’s executive president Tarek Mashhour and Puebla Governor Sergio Salomon aim to turn the state into a hub for electric vehicles, according to the statement.
Audi Mexico has already begun installing the infrastructure and equipment necessary for the production of a car with “e-tron” – or fully electric – equipment, the statement said.
Audi, which belongs to the Volkswagen group, has one plant in Mexico in the Puebla town of San Jose Chiapa, where it currently has 5,000 employees, according to company data.
“Investors’ confidence in Mexico is strengthened, as there is certainty that our country is growing economically,” governor Salomon said via his X account on Tuesday.
His comments came hours after Mexican President-elect Claudia Sheinbaum tried to calm investor concerns over a proposed judicial overhaul, promising the country would maintain its rule of law while saying she planned to push ahead with reforms.
Audi Chief Executive Gernot Doellner said in March that the automaker was sticking to its electric vehicle strategy despite facing challenges this year.
(Reporting by Raúl Cortés Fernández and Stéphanie Hamel; editing by Drazen Jorgic, Brendan O’Boyle, Elaine Hardcastle)
