Audi mulls new plant in North America to cope with 2012 growth
By Julybien, 11 Jan, 2012. 0 Comments
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Audi may build another site in North America aside from its parent Volkswagen’s Chattanooga, Tennessee plant. Audi CEO Rupert Stadler told Handelsblatt newspaper that the carmaker expects further growth in the U.S. and plans to build its own production site as part of its strategy. The company posted almost a 16% hike in sales in the U.S. in 2011 to 117,561 units.
Audi will have to produce cars in North America when the sales figure reaches 150,000. The company is mulling whether to use the Chattanooga site or build a plant in Mexico.
Producing cars in VW’s site would require less investment but would mean higher custom duties when it exports the vehicles. Building a new site in Mexico, meanwhile, would require high initial investment but offer labor flexibility and lower wages, Stadler told Reuters.
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