Audi Will Build Cars in Mexico

www.insideline.com
By Paul Lienert, Correspondent
Published Apr 18, 2012

Just the Facts:
•Audi has formally selected Mexico as the location for its first North American assembly plant.

•Audi plans to begin building a utility vehicle — reportedly the next-generation Q5 crossover — at the Mexican plant beginning in 2016.

•Last year, Audi sold a record 117,561 cars in the U.S.


INGOLSTADT, Germany — Audi has formally selected Mexico as the location for its first North American assembly plant and plans to begin building a utility vehicle — reportedly the next-generation Q5 crossover — there beginning in 2016.

Announcing the plant decision Wednesday, Audi said a specific location will be selected later this year.

Corporate parent Volkswagen has a massive assembly complex in Puebla, Mexico, and a new engine plant in Silao. Audi presumably will be able to tap into VW's supplier network.

Audi Chairman Rupert Stadler said: "As an established carmaking location, Mexico offers an excellent economic basis for Audi production operations."

Audi said the decision to build the new plant will enable it to supply vehicles not just to the American market but worldwide from Mexico, and dovetails with its strategic plan to reach annual global sales of 2 million units by 2020. Last year, Audi sold a record 117,561 cars in the U.S., according to Automotive News.

Inside Line says: Audi's choice of Mexico means VW will have the new Chattanooga plant all to itself for at least a few more years.