President-elect Donald Trump's threats against car companies in Mexico aren't spooking Volkswagen -- yet. The automaker is ramping up production of its Tiguan SUV in Mexico, a decision the company made two years ago. This year, it plans to make 130,000 new SUVs out of its Puebla facility in Mexico. Last week, Trump threatened to slap a "big border tax" on Toyota and GM for producing cars in Mexico and selling them in America. He also applauded Ford for canceling plans for a new plant in Mexico and instead invest and hire in after Trump had lambasted Ford during his campaign. Volkswagen leaders in Mexico aren't blinking yet. Thomas Karig, VW's director of corporate relations. Related: Trump threatens GM to Make in U.S. It's a big bet: This move aims to drive down the price tag of the Tiguan in the United States, where the SUV market is booming. Volkswagen launched the new Tiguan on Monday at the Detroit Auto Show. This Volkswagen factory produces cars for other parts of the world, but exports roughly half of its cars to the United States.
Opened in 1967, the sprawling 740-acre plant in the state of Puebla has grown into VW's largest outside of Germany. The factory also produces others cars, including the Golf, the Beetle (which are now made exclusively in Mexico) and the Jetta. Karig talks proudly about the high level of automation at the plant, where state of the art technology attaches the vehicle's body and chassis. This factory alone employs 14,000 workers, or the vast majority of the company's 14,600 employees in Mexico. By comparison, Volkswagen employs 7,000 in the United States. An estimated 40,000 more people work for VW's suppliers, making the factory a powerhouse for the local economy. Related: Ford cancels Mexico plant. Will create 700 U.S. In the nearby town of Cuautlancingo, Trump's threats resonate. Besides tariffs, the president-elect has threatened to make Mexico pay for a wall on the border and to withdraw from NAFTA, the free trade deal between the U.S., Mexico and Canada. Residents aren't afraid of speaking out about how they feel about Trump. Francisco Sanchez, who worked in the factory for 28 years before recently retiring. Workers at the factory are worried too. Daniel, who requested his last name not be published, has worked for VW for 18 years. Anybody who follows the Mexican car production business knows that there's much to fear from Trump's threats. Bill Rinna, senior manager at researcher LMC Automotive, worries about the threat of 35% tariffs.
I really like the way the front of the vehicle looks and the side, really clean lines, very well proportioned. I think they did a really, really good job with the car. Tom Smith: And inside, anything else? You mentioned lots of space and the tech inside, and super user friendly. Anything else about the inside? Clinton Quan: Well, if you鈥檙e driving the SEL or the SEL Premium, you鈥檒l definitely notice the virtual dash. That鈥檚 very prominent. What I really enjoyed most is that angled center stash 鈥?Center stack, with the navigation- The navigation screen and the audio and climate controls, so I really appreciate that. Every car I鈥檝e ever driven has an angled center console, center stack. Tom Smith: Yeah. I know, that鈥檚 one of your things. It seems to be a hot button for the professor. Clinton Quan: It鈥檚 more driver oriented, which is what I really like.
Tom Smith: Yeah. The whole car, outside and in, it reminded me of Audi. Tom Smith: It was like, 鈥淗ey. Clinton Quan: Yeah. It definitely is. It definitely has a premium feel to it. Tom Smith: Yeah. So, okay. We鈥檝e got outside, we鈥檝e got inside, we鈥檝e got tech, we鈥檝e got gas mileage. Anything else before we hit top three? Clinton Quan: I think we鈥檝e covered everything. Tom Smith: All right, top three! Clinton Quan: For top three, I would definitely have to say the interior space; it feels very roomy for the passengers in the back. Clinton Quan: Then, number two. I would have to go with the interior design, especially with that virtual dash. It feels like an Audi with that, a new dashboard design. Then number three, I would have to go with the ride and handling of the vehicle. Tom Smith: All right. Fantastic. Anything else to add? Clinton Quan: Well, I would say it looks like the R-line is going to be a really popular model with the 17-inch wheels and the sporty trim, but I鈥檓 not sure how many of those they鈥檙e going to be making. So, that鈥檒l definitely be, I think, a hot seller along with the 鈥?Probably the SEL and the SE. Those are probably going to be the top, the three trims that are going to be the most popular. Tom Smith: Well, there you have it. Thank you to our friends at Ontario Volkswagen. Earl Reed, Scott Reed. Jim Straley, the service director. Of course, Randy Halcomb. Go on out to Ontario Volkswagen, say hello to our friends out there. Tell them, Tom and the Professor said to swing by. And thank you, Professor, as always. Clinton Quan: Thank you. Tom Smith: For iDriveSoCal, I鈥檓 Tom Smith. Thank you for listening.
