Audi mulls expanding capacity in Americas to gain more ground

Article by Anita Panait, on May 7, 2013

Audi is mulling to expand its production capacity and presence in the Americas as part of its bid to further penetrate the region and challenge fellow German luxury car maker BMW. Audi recently held the groundbreaking of a new plant in San Jose Chiapa, Mexico.

Production work is slated to start in 2016. It could build as many as 150,000 vehicles, particularly the Q5 SUV, every year starting in 2016. During the groundbreaking event for the plant, Audi chief executive Officer Rupert Stadler, remarked that the German carmaker is mulling to double the production capacity of the new plant in the longer term.

He remarked that the new plant has enough space eventually to produce a second model like the Q6 SUV. Stadler also remarked that Audi is mulling whether to commence building cars in Brazil, a decision that will be out later this year.

Audi has managed to surpass Mercedes-Benz as the No. 2 premium brand in the world, thanks to its presence in Europe and an early entry into China. Stadler said during the groundbreaking ceremony that “every seventh Audi” from the carmaker’s worldwide production will be sold in North America by 2020.

He added that by then, Audi has reached its goal and “strengthened America as a third pillar” of its sales in addition to Asia and Europe. Audi plans to locally source at least 65 percent of the content for the San Jose Chiapa plant. Stadler said that the new plant, a $1.2-billion investment, will create 3,800 jobs in the town.

Topics: audi

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