MEXICO CITY -- ContiTech Fluid Technology relocated its Mexican factory to a location north of Mexico City to expand production of hoses for Volkswagen AG.
The new plant's 75,000 square-foot production area is three times the size of the old factory. It will produce 2.5 million air conditioning hoses, power steering hoses and transmission oil cooler hoses annually.
The plant will supply air conditioning hoses for the Volkswagen Jetta and New Beetle, plus 75 percent of the sedans to be built in VW's new assembly plant in Chattanooga, Tenn. The plant also supplies air conditioning and power steering hoses to BMW AG and Mercedes-Benz U.S. International Inc. in Vance, Ala.
ContiTech Fluid Technology is a unit of ContiTech AG, which in turn is a division of German supplier Continental AG.
ContiTech AG, of Hanover, Germany, had global sales of 2.4 billion euros ($3.3 billion) last year. Continental, also of Hanover, ranks No. 4 on the Automotive News list of the top 100 global suppliers, with parts sales to automakers of an estimated $18.74 billion in 2009.