No surprises here. On a day in which Audi has dominated the news – by buying Ducati and unveiling a new concept for the Beijing auto show – it completes the hat trick by announcing that its new factory will be built in Mexico. Production is slated to begin in 2016, but Audi only announced that the plant would be building "an SUV model." Speculating on which that might be, we imagine it would make sense for one of the brand's high-volume nameplates to be built here in North America, which would point to the Q5.

Audi parent Volkswagen already operates facilities in the Mexican cities of Puebla and Silao, so the company is intimately familiar with the nuances of building cars in the country. That should help in getting the facility up to speed quickly, although Audi board members emphasized finding the right location in Mexico in their statement announcing the decision.

Audi also said it could supply vehicles from Mexico worldwide, and reiterated its goal of selling two million vehicles each year by 2020. That, of course, is part of Volkswagen's stated intent of becoming the world's largest carmaker by the end of this decade.
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Audi to build production plant in Mexico, maintaining its drive for internationalization
  • Supervisory Board welcomes plans for Audi plant in Mexico
  • Rupert Stadler, Chairman of the Board of Management of AUDI AG: "Excellent basis for sustainable growth"
The decision has been made: AUDI AG Board of Management and Supervisory Board of AUDI AG approved plans to build a North American plant in Mexico. The exact location for the new plant, which will manufacture an SUV model starting in 2016, will be chosen by AUDI AG later this year.

"As an established carmaking location, Mexico offers an excellent economic basis for Audi production operations," declared Rupert Stadler, Chairman of the Board of Management of AUDI AG. Mexico is one of the world's top ten automotive locations and offers a blend of tradition and experience. The group parent Volkswagen already has an automotive plant in Puebla and an engine plant in Silao. "Good infrastructure, competitive cost structures and existing free trade agreements played a significant role in the choice of Mexico," emphasized Stadler. "This trailblazing move will help us safeguard our position on the world market. Our German locations, too, stand to benefit from it."

"The new plant will become a fully fledged member of the Audi production network and will implement the very latest standards in terms of resource efficiency and production processes," stated Frank Dreves, Member of the Board of Management of AUDI AG for Production. "Audi is all about premium quality no matter what the location." Following on from the policy decision, the next step will be to conduct a detailed examination of various locations in Mexico. AUDI AG aims to choose the exact location within the course of the year. "The factors that we will take into account include not just the specifics of the real estate and its logistical links," emphasized Thomas Sigi, Member of the Board of Management of AUDI AG for Human Resources. He also cited quality of life as a decisive criterion. "It is important for us to be able to find well-qualified employees there," continued Sigi, referring to the need for an effective infrastructure of schools and universities.

Peter Mosch, Chairman of the General Works Council of AUDI AG, added: "Stepping up production capacity safeguards our growth and at the same time guarantees the capacity utilization of the main plants, which we envisage will increasingly take on the role of lead plants for our technologies. That means developing modern production methods and strategies, using new materials and joining technologies, and addressing the field of electric mobility. For the employees, this offers attractive, secure jobs and additional career prospects. An employment guarantee will also be agreed."

"It will be possible to supply customers worldwide with cars built in Mexico to Audi's renowned standard of quality," said Peter Schwarzenbauer, Member of the Board of Management of AUDI AG for Marketing and Sales, emphasizing the importance of an international presence for international success. Schwarzenbauer added: "In launching production operations in Mexico, Audi will enhance its own competitiveness and move significantly closer to its sales target of two million units per year by 2020."


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  • 57 Comments
      • 2 Years Ago
      [blocked]
      Mazdarocks
      • 2 Years Ago
      I think Mexican assembled products exported to USA and CAN are covered under NAFTA. It’s one of the reasons Mazda is going south of the border (apart from the cheap labor, and strong yen issues).
        rlog100
        • 2 Years Ago
        @Mazdarocks
        -Cheap labor -NAFTA bypasses the chicken law -2008/2009 when Congress and some degree, the public, made it quite clear they didn't give a damn about the state of heavy manufacture in the US. In the face of those 3 things, any automaker setting up a new autoplant here is a fool. The exceptions are if the money was already invested and/or expanding an existing plant.
      Ryan
      • 2 Years Ago
      Love the Sinatra reference!
      Joe
      • 2 Years Ago
      Talk about a bold week for the four rings.. GO AUDI!
      Hazdaz
      • 2 Years Ago
      This is what happens when the ONLY thing that matters is the bottom-dollar. Maybe those dumb hicks in the South should remember that no matter how much cheaper their labor rate is compared to the North, there will always be cheaper rates elsewhere in the world. And chances are, the Mexicans that Audi will hire are better educated and easier to deal with than whatever labor pool they would have gotten down in the South. This is the 'Race to The Bottom' that occurs when all you can offer an employer is a cheap rate... so congrats, Southerners, you've gotten exactly what you idiots deserve!
        cuda010
        • 2 Years Ago
        @Hazdaz
        spoken like a true libtard. What your saying is that southerns should be demanding top dollar for as little work as possible, right? Ideas like that are SURE to persuade companies to invest plants here. If everyone thought like your retarded a**, there would be ZERO manufacturing jobs left in the US. So THANKS, UAW ********, you got exactly what you deserve.
          Carlos Cruz
          • 2 Years Ago
          @cuda010
          Sure, because GM, Chrysler and Ford aren't doing great right now. Paying these workers a decent salary means that they have more money to spend. As they spend money they move money through an economy that needs stimulating. I know the Republican way is to have the CEO take all the money, however, the big CEO will buy his Viper, boat and car elevator no matter how much he makes, since making 15m vs 20m doesn't mean that he will live a life which is 25% more luxurious.
        SatinSheetMetal
        • 2 Years Ago
        @Hazdaz
        The workers in the south had no control over a majority of the factors that went into Audi's decision to build a plant in Mexico.
      anonymous guy
      • 2 Years Ago
      Look forward to some poorly built Audis ... just like the Mexican VWs.
      Deutschlieber
      • 2 Years Ago
      To me, this debases the brand. I don't have a problem with VWs and FIATs being built in Mexico. They are not premium (read expensive) vehicles. It was always understood that part of premium was for higher labor costs associated with the vehicle being built in a certain part of the world. With lower labor costs, I will expect lower prices.
        gregmlr
        • 2 Years Ago
        @Deutschlieber
        I agree, but we all know that won't happen. Also, that thumbs down was supposed to be a thumbs up. Autoblog, I wish you would fix your Chrome-hating backwards-rating comment system!
          thedriveatfive
          • 2 Years Ago
          @gregmlr
          not just chrome, firefox and opera also do this at times.
        SatinSheetMetal
        • 2 Years Ago
        @Deutschlieber
        All of the premium is for the locking rings on the hood and trunk. That's it. If Hyundai released a vehicle that was an exact replica of an S-class (not similar, exact) it wouldn't sell as well, because it doesn't have a MB logo on it, even if it was cheaper. It's about exclusivity, and stoking one's ego.
      RCBR
      • 2 Years Ago
      I'm really disappointed with Audi for choosing Mexico. I'm sure Mexicans will be able to build quality Audi vehicles, but the perception of a Mexican-produced Audi still bothers me. With BMW, it seems like a lot of consumers are starting to like that their X3s and X5s are built in South Carolina. Same goes for Mercedes-Benz with their production in Alabama. When people begin to realize that those vehicles aren't produced in Germany anymore, they seem to overlook that with the fact that they are now produced locally for the whole world to consume. It gives a sense of pride to people to know that their German-engineered vehicle was built by Americans. With this, I think Audi may bring up a huge perception problem. Even if the vehicles produced are of the highest quality possible, the perception will lag for quite some time. It's just the way things are these days.
      muspod
      • 2 Years Ago
      another reason not to buy one of those...
      • 2 Years Ago
      [blocked]
      Alfredo Huerta
      • 2 Years Ago
      Any car that goes from usa to europe has a 11 % tax.. from mexico to europe 0% tax... that's the reason.. blame our government for it.. also the uaw for pushing vw workers to joining them..
      Soyntgo4it
      • 2 Years Ago
      So much for German engineering.. VWs now Audi and I heard Porsche will be next to me built in Mexico..Talk about poor quality vehicles coming your way...
        Basil Exposition
        • 2 Years Ago
        @Soyntgo4it
        You do realize that the engineering is not done at the production facility, right?
          Soyntgo4it
          • 2 Years Ago
          @Basil Exposition
          Well duh... Hello talking about them making that decision to have them in Mexico isn't very smart says a lot at least they should have put the plants in the USA instead.
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