Another good piece of news for the Mexico economy. CEO of German carmaker Volkswagen has revealed that production of Volkswagen Golf might be undertaken in Mexico by 2014. The CEO informed this to Automotive News during an interview session. However the final decision is yet to be taken and this should happen pretty soon. Once the project is realized, North America would be the producer of all three of VW's biggest sellers in the U.S.

Mexico has become a hub for automotive industry with auto majors from all over the world investing billions of dollars setting up plans and facilities in Mexico.

Automotive News stated in its report that Golf production would take place at VW's Puebla, Mexico plant that currently builds the Jetta and Beetle, marking the first time the Golf is built outside of Germany. CEO Martin Winterkorn also spoke about the Chattanooga, Tennessee plant that currently builds the Passat. He admitted that while capacity maxed-out at the year-old facility, there's room for expansion. Confirming earlier rumors, Winterkorn informed that if VW is going to expand, it would be with a utility vehicle that is "roomier than the Tiguan."

It is speculated that the decision to start production in Mexico will accelerated VW's targeted sales growth in the U.S., which is already up 37 percent this year over 2011. Mexico’s display of potential is attracting global car-makers to bring their production house in the region. This is great news for the country that is proving its credentials by leaps and bounds. Auto industry is very vital to the economy of any country. It has often been observed that when a country's auto manufacturing industry develops other industries also grow as a consequence. Mexico is not immune to this as it's overall economy is also growing.