Audi hopes new plant in Mexico will help it topple Bmw as the leading luxury auto brand

Article by Christian Andrei, on May 6, 2013

Audi has kicked off a plan to construct a $1.3 billion factory in Mexico where it will produce more than 150,000 cars annually. This property is located at the hills outside of San Jose Chiapa, between Mexico City and the port of Veracruz.

Volkswagen Group believes that the construction of this factory will help it achieve its goal of becoming the biggest automaker in the world and beating BMW Group as the top-selling premium automaker globally.

With this plant, Audi gets a production base nearer to the U.S. where it hopes to catch up to its rivals, the big German automakers.In 2012, Audi sold just about 50% of what BMW and Mercedes-Benz sold in the U.S. At a recent industry conference in Vienna, VW CEO Martin Winterkorn said that the new plant in Mexico has a vital role for Audi, since this will allow Audi to assemble cars in North America and not be affected by U.S. dollar currency swings.

It’s also expected that Audi’s profits will support Volkswagen’s move to beat General Motors Co. and Toyota Motor Corp. for the title of world's biggest automaker by 2018. In the first quarter, deliveries of Toyota and its subsidiaries came to a total of 2.43 million vehicles compared to GM's 2.36 million and VW's 2.27 million. Audi made up 56% of operating profit for VW Group in the first quarter.

UBS predicts that this year, Audi is predicted to achieve 5 billion euros, or 42%, of the Volkswagen Group’s operating earnings as an aging model lineup and expansion costs cut into margins. Christian Stadler, a management professor at the University of Warwick in Coventry, England, said that Audi is winning in markets like China so it should be able to replicate this success in North America. He thinks that it would be beneficial to have its production plant near the market.

Topics: audi, mexico, bmw, plant

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The highlight of this year’s Consumer Electronics Show may be based on some of these keywords---connectivity, integration and partnership. Just like in the previous year, you’ve probably heard and read...
by - January 16, 2017
Less than three weeks to go and the Super Bowl LI – one of the most awaited and most watched sports events in television – will commence on February 5,...
by - January 16, 2017
New Tesla vehicles will have to pay when charging at any of the carmaker’s Supercharger stations once they exceed their annual limits. This comes as Tesla Motors announced revisions in...
by - January 16, 2017
Off-road driving with an open air vehicle provides another kind of experience for many off-road enthusiasts and fans. For this sake, Ford is planning to offer a version of the...
by - January 16, 2017
For those who love driving, future autonomous cars should be like the Toyota Concept-i that is drawing in a multitude of visitors at the 2017 Consumer Electronics Show in Las...
by - January 15, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries