Audi officially confirms plans to build a plant in North America

Article by Christian A., on January 18, 2012

A top U.S. Audi official has confirmed that a plan to construct the first vehicle-assembly plant in North America has been approved but the location and area have yet to be announced. What’s to be removed from the list of potential sites is the Chattanooga, TN, facility, the home to parent Volkswagen’s new Passat plant and a onetime front-runner site for an Audi plant.

Meanwhile, Mexico seems to be very probable. In a WardsAuto interview, supplier sources said last November that this may be Audi’s selected locale. CEO Rupert Stadler said that Mexico has advantages when it comes to labor flexibility and lower wages.

Audi of America President Johan de Nysschen is adamant that a decision has yet to be made. However, he mentions the benefits of Mexico when he was interviewed during the North American International Auto Show this week. De Nysschen confirmed that a plant will rise in North America and that it’s just a matter of when the construction will start.

Even if the recent economic troubles of the European Union mean that in the short-term, Audi will gain in the U.S. due to a weaker euro, it will still have to have production in the dollar zone as a hedge against adverse currency fluctuations.

De Nysschen said that Audi’s exposure to the exchange rate grows as its business in the U.S. increases. He added that very soon, Audi will be a $7.5 billion business. How Audi performs in the U.S. determines when the decision is made, adding that for local production to be viable, there has to be one vehicle line at a volume of at least 100,000 units annually. [source: Ward's Auto]

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 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