Audi to build a vehicle assembly plant in North America

Article by Christian Andrei, on July 11, 2011

Audi AG, the luxury brand of Volkswagen Group, will be building a vehicle assembly factory in North America. It is also studying an additional an additional engine and transmission plant. The company is completing the assembly plant’s details, including the models, capacity and location.

According to the company’s Chief Executive Officer Rupert Stadler, all decisions will be made within three years. He stated that it is “totally clear” that the company needs new production capacity in the United States, but the question remains as to when it would be.

Citing an insider source at Audi, the Automotive News reported that the company is studying an engine and transmission factory in North America to increase local content. This second facility could be shared with the VW division. Stadler disclosed that the company intends to increase its U.S. sales by 10 to 20 percent this 2011.

He added that it could achieve more than 150,000 vehicles by 2015. In 2010, the company set a sales record with 101,629 units sold in the United States.

Inventory is an issue for the company. Stadler stated that their dealers currently seek more vehicles than the company can deliver. He added that their delivery times remain too high. On July 1, the company had a 21-day supply of vehicles in the U.S.

Moreover, Stadler stated that the company aims to almost double its sales globally by the end of the decade according to the company’s "Strategy 2020" plan.

In 2010, the company sold 1.1 million new vehicles. Furthermore, Stadler revealed that the company’s original target of 1.5 million vehicles for 2015 will be reached a year earlier than planned. He further stated that by 2020 Audi wants to sell 2 million units.

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