The VW factory in Puebla, southeast of the Mexican capital, had long been the only plant in the world still manufacturing Beetles.
German carmaker is halting production of the iconic vehicle.
UAW misses getting a foothold in foreign-owned auto assembly plants located in the traditionally anti-union South.
Factory is part of the company’s effort to electrify its vehicles.
The announcement was made at the Detroit auto show.
Automakers also in talks about an alliance to build commercial vehicles that could lead to other ventures.
VW CEO says “growing protectionism also poses major challenges for the globally integrated automotive industry.”
VW agreed to spend up to US$10 billion compensating owners of roughly 475,000 Volkswagens and Audi vehicles with 2-litre diesel engines.
Emissions flap has already cost the German automaker $20 billion in fines and civil settlements in the US.
Rupert Stadler is being investigated on suspicion of fraud and indirect improprieties with documents.
Automaker exposed monkeys to diesel exhaust; now says it “emphatically rejects” tests on animals.
NHTSA investigators found more consumer complaints about airbag and brake problems.
Executive teams will work together to map out co-operation on innovating technology and leveraging market positions.
Guarantee applies to new cars bought from a Volkswagen dealer from April 1 through the end of the year.
Volkswagen group is expanding the factory in Sant’Agata for Urus as it enters the luxury field.