Volkswagen has already announced its intentions to build a factory in the U.S., narrowing down the possible sites to Alabama, Michigan and Tennessee. Now, in advance of a shareholder meeting in Germany, Audi CEO Rupert Stadler is reportedly saying that Audi is considering a U.S. plant, as well. The move on both automakers' parts is an attempt to capitalize on the weak U.S. dollar, the stronger euro and the fact that material costs are on the rise and a U.S. plant could mitigate some of those expenses. Additionally, both VW and Audi have made it clear that in order to achieve their lofty sales goals – one million units a year by 2018 for V-Dub and Audi's campaign to become the numero uno luxury carmaker – ramping up production capacity in the U.S. where many of those sales will be made is instrumental to their mutual success.
[Source: Autoweek]
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Reader Comments (Page 1 of 2)
Serge K. @ May 7th 2008 5:33PM
Assembled in Germany>in Hungary>U.S.A.
Scorch @ May 7th 2008 6:21PM
Hmm. That's funny, I don't remember German-made Audis setting the world on fire with their reliability. That leads me to believe its either poor build quality or just a whole lot of engineering flaws. Either way, bringing a plant to the U.S. couldn't hurt.
By the way, as of the last reliability ranking, Audi barely edged out Dodge. Ouch
8189720 @ May 8th 2008 12:14AM
After driving an Audi I still can't tell the difference between a Jetta. Sure, it's $20 G's more, but for that price could you at least improve reliability... oh, and replace the windshield wiper/turn signal lever to be different, you know, so it doesn't look like it's from a car half the price.... K?
SOhp101 @ May 8th 2008 3:31AM
German cars may not be known for their reliability, but the build quality is impeccable.
Cars built in America mysteriously develop rattles and squeaks. I for one will never purchase an American built car ever again.
pmiddle5 @ May 7th 2008 5:40PM
You forgot Mexico. It doesnt matter where these cars are made, if the design problems are not fixed I still dont want one....!
Kevin @ May 7th 2008 5:50PM
I don't think they have much to lose here... Manufacturing costs will go down, and it's not like the quality could possibly get much worse than it already is.
DJ @ May 7th 2008 5:59PM
If they can retrofit a closed auto plant in Illinois, Michigan, Ohio, New York or New Jersey, and hire former auto workers, the state they pick will basically pay for the plant, upgrades and give them other tax incentives to boot. It' really is a no lose situation right now.
imoore @ May 7th 2008 6:07PM
One reason that will never happen: Unions. They're one of the reasons the companies choose the South. You can get away with dealing with them if your name is Toyota, Honda or Subaru.
pmiddle5 @ May 7th 2008 6:34PM
^^^ Mercedes too.
letstakeawalk @ May 7th 2008 10:09PM
Don't forget BMW
michael.r.felkins @ May 7th 2008 6:15PM
We have a very nice Ford plant in Saint Paul that is up for sale, comes with it's own hydro-electric plant. And what better place to build a Quatro?
michael.r.felkins @ May 7th 2008 6:15PM
We have a very nice Ford plant in Saint Paul that is up for sale, comes with it's own hydro-electric plant. And what better place to build a Quatro?
fuzzy @ May 7th 2008 6:16PM
Wow.
If Audi's didn't have a problem with reliability before... ;)
(although that might not be the case if they use good labor here, like Toyota and Subaru)
elprogramer @ May 7th 2008 7:04PM
What are you inferring? The quality of a product is directly related to the pride and skill of a workforce and the ability of management to maintain standards those standards.
People like to make out the supposed power of unions, but in my (first-hand) experience, said power is grossly overestimated, especially in a labor market where non-union shops are on the rise.
Quality drops when an employer is more concerned with short-term profits and growth than it is with the long-term. American quality slipped decades ago because they had no natural competitor and planned obsolescence was the strategy of the era.
In short, there is no "good labor", there is only the ability of a company to ensure their product meets the consumer's demands. The myth of union power is an excuse for those companies who fail to maintain those standards.
Tai @ May 7th 2008 7:14PM
I can't see a plant opening in Michigan due to obvious(UAW) reasons. I can see them opening in Tennessee.
Tsunami Racer @ May 7th 2008 7:28PM
what are you guys talking about? by making products in the USA, audi's quality might actually go UP!!
Kevin @ May 7th 2008 8:24PM
Doubt it. The ML is still the least reliable car Mercedes has made in the past decade. Despite sharing an engine and transmission and innumerable other parts with the E class, the ML suffers from all kinds of maladies that the E class just plain doesn't, for the most part.
That being said, like I said in an earlier comment... With Audi's quality being what it is, I don't see how it could possibly get much worse. But improve? I don't see it. At least not if they build the plant in Alabama. BMW doesn't seem to have too many issues with the X5, on the other hand... Perhaps Audi should look at North Carolina...
mxrz @ May 7th 2008 8:49PM
Audi's quality can't get any worse? LOL Bunch of clueless armchair experts.
Kevin @ May 8th 2008 12:59AM
Technically, you're right about them having room to get worse, at least according to JD Power... I mean, they could end up on par with Volkswagen...
mxrz @ May 8th 2008 1:39AM
The thing is, allot of brands span the entire ratings range from bad to excellent in quality, depending on the model. I mean look a JD Power ratings for the Audi A8, arguably the most complex and feature packed model... Safe for a few unlucky ones, it's ignorant to claim an entire car brand is unreliable or bad quality... It comes down to the model and often times also the model year. None of these armchair experts have the slightest idea how good or bad future Audi's will be, whether they're assembled in Germany, Hungary, Slovakia, USA or even China.