Volkswagen plans car and truck assembly plants in Cuenca, Quito and Manta

Volkswagen announced Monday that it will begin producing cars and trucks in Ecuador in 2017, and hopes to produce 120,000 vehicles a year by 2024.

Juan Eljuri, right, with Volkswagen representatives.

The plans were announced at a press conference in Cuenca, following the signing of an agreement between the German car and truck manufacturer and the Cuenca-based Eljuri Ecuadorian Group, and its subsidiary auto import company, Fisum.

Volkswagen said it plans to assemble pick-up trucks and other utility vehicles in Quito and Cuenca, and cars in Manta. Production will begin early next year in existing facilities south of Quito while facilities in Manta and Cuenca will begin construction following property acquisition.

According to Ecuador’s Minister of Foreign Trade, Juan Carlos Cassinelli, who was in Cuenca for the announcement, Volkswagen production will generate 5,000 direct jobs and about 10,000 indirect jobs by 2024.

Fisum CEO Marcos Malo said plans were six years in the making, and included extensive marketing and logistics evaluations. He said his company would sell the Ecuador-produced vehicles in Colombia, Peru, Venezuela, and Brazil, in addition to Ecuador.