Production of the second generation of Volkswagen’s reborn Beetle line is underway in Puebla, Mexico, where the first consumer-ready Beetles are being built.
Puebla will supply the globe with Beetles for now, although VW admits that if demand is high enough, it will consider expanding production to another market.
VW invested about $400 million into the Puebla plant to retool for Beetle production. The automaker anticipates being able to build around 100,000 units next year, although it has the capacity for a total of 500,000 vehicles including the Jetta sedan.
Local parts suppliers provide VW with about 70 percent of the Beetle’s components, which has helped it keep profit margins high and list prices relatively low. Starting at $24,950 for the introductory Black Turbo launch edition, the Beetle will hit showrooms in September. A cheaper version listing for less than $20,000 will arrive in dealers shortly thereafter.
