Reports from Germany indicate that Volkswagen AG has chosen Mexico as the site for its new North American factory but Audi spokesman Brad Stertz said that the decision hasn’t been made yet. He clarified that the supervisory board of Volkswagen hasn’t made the final call yet on where the factory is located or what model will be produced in the new factory.
Stertz said that the board will be meeting next on April 18. According to German magazine Der Spiegel, Audi has received the support from parent Volkswagen to produce the Q5 sport-utility vehicle starting 2015. No sources were cited. The report further stated that the supervisory board intends to ratify the plans when the board meets on April 18.
Initially, VW had hoped to expand its U.S. factory in Chattanooga, Tenn., which was opened just a year ago for Audi’s output. VW’s Chattanooga plant produces one model – the mid-sized Passat. Audi officials have been saying this year that they will decide where to have the North American production by the summer, according to Autonews. The likely locations are in Mexico and the U.S. Presently, the Jetta and Beetle are being produced at VW’s plant in Puebla, Mexico.
VW plans that in 2013, it will open an engine plant in Silao, Mexico. Last February, Michael Macht, VW’s head of manufacturing, informed Automotive News that as soon as the decision is made, the factory will be able to start production after 2.5 years. Macht said that another factor being considered on where this plant will be put up is its plan to offer a big Volkswagen SUV (bigger than the Tiguan) to the U.S.