German carmaker Volkswagen is planning to manufacture the 7th generation Golf hatchback at its Puebla facility in Mexico.
The new location was selected as the carmaker's Chattanooga facility in Tennessee, US has reached its full capacity.
Volkswagen CEO Martin Winterkorn was quoted by German magazine Automobilwoche as saying that Chattanooga has exhausted its capacity.
"If we expand there, an SUV that ends up roomier than the Tiguan would have a good shot," Winterkorn said.
With expected production in Puebla by late 2014 or early 2015, the new Golf is also planned to be manufactured at carmaker's Foshan plant in China by the end of 2013.
The new hatchback model will be offered with a new EA888 2.0-litre turbocharged direct-injection petrol engine with two different output variants that include 220PS and 230PS versions which will be mated to an optional six-speed DSG gearbox.
