Audi has announced that it has settled on San José Chiapa, Mexico for its newest production facility in North America.

The new plant will house production for the successor to the current Audi Q5 after the facility is up and running in 2016. Expected annual output capacity is projected to be 150,000 units. Construction work on the plant buildings is slated to begin in mid 2013.

After declaring its intention to build a new factory in North America earlier this year, the German automaker reviewed more than a dozen locations before settling on the municipality in the Mexican state of Puebla. Overall site conditions, logistic links and infrastructure and a good supply of well-qualified employees were chief amongst the reasons for the selection of San José Chiapa. It also probably doesn't hurt that parent company Volkswagen already has a plant in the area.

Audi maintains that the Mexican plant will help it meet "key requirements" of its overall growth strategy through 2020, including steady product supply to the North American market.

Said Audi General Works Council Chairman, Peter Mosch, "The new location in Mexico will unlock further growth for us, and also protect capacity at the main plants." Mosch continued, "The latter will increasingly step into the role of lead plants for our technologies in developing modern production methods, using new materials and joining techniques, and with regard to electric mobility."

The San José Chiapa plant will bring VW's total facilities in Mexico to three – the automaker also maintains a plant in Silao. Scroll down to read the official press release.
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New Audi plant in Mexico: San José Chiapa the chosen location

- Audi Board of Management and VW Group Management decide on location

- CEO Rupert Stadler: "Important for the American market and for our global growth"

- Construction work to start in mid-2013 – start of production 2016

More than a dozen locations were looked at, compared and evaluated. Now the decision has been made: Audi will build its new plant on the American continent in San José Chiapa, in the State of Puebla, Central Mexico. This was decided today by the Audi Board of Management and the Group Management of Volkswagen. The new plant marks a major milestone in the growth required in Audi's Strategy 2020.

Site conditions, logistics links, infrastructure, well-qualified employees and living quality – these were the decisive criteria for the choice of location. "The production site in San José Chiapa meets various key requirements of our global growth strategy and we can step up our activities in American markets," said Rupert Stadler, Chairman of the Board of Management of AUDI AG. The chosen location is an ideal base from which to supply international markets from Mexico. He continued: "We are delighted that the Mexican government and the state of Puebla are so supportive of our project."

After in-depth talks with the governments of various Mexican federal states, San José Chiapa was clearly identified as a suitable location. The Mexican government and the State of Puebla were very supportive of the selection process. "We congratulate Audi on this decision and are sure that the location meets the ideal criteria for fulfilling the Company's strategic goals," emphasized Rafael Moreno Valle, Governor of the State of Puebla: "We are proud that Audi, a leading European premium manufacturer, has chosen our country as a future production base." The Governor added that the Company will be welcomed with open arms in Mexico.

"The new plant in San José Chiapa will be the most modern in the Audi production network for its efficient use of resources and production methods," remarked Audi Board Member for Production Frank Dreves. "The Audi Production System means we build cars of premium quality at every single one of our sites."

Other factors in favor of San José Chiapa are its central location, good logistics links and proximity to highly reputable universities and colleges of advanced technology.

"When deciding on a new site, it is important that we can find well-qualified employees there. Internationally recognized schools for the children of employees sent on assignment to Mexico are also crucial," emphasized Audi Board Member for Human Resources and Labor Director Thomas Sigi. The infrastructure of schools and universities was therefore a prime criterion when choosing the site. "Quality of life, healthcare provision and the security of our employees are other major factors," added Sigi.

The Audi Works Council, too, welcomes the Company's decision. General Works Council Chairman Peter Mosch declared: "The new location in Mexico will unlock further growth for us, and also protect capacity at the main plants. The latter will increasingly step into the role of lead plants for our technologies in developing modern production methods, using new materials and joining techniques, and with regard to electric mobility. For the employees, this solution offers not just secure jobs, but also additional career prospects. And we have concluded an employment guarantee agreement with the Company until the end of 2018."

Audi will build the successor to its current Audi Q5 SUV model at its Mexican plant, with a planned annual output of 150,000 units. Production is scheduled to begin in 2016. Once the agreements have been signed, work can begin on preparing the site in San José Chiapa before the end of the year. Construction work on the plant buildings should start in mid-2013.


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  • 39 Comments
      Bimmer
      • 2 Years Ago
      NAFTA baby, no import tax to Canada! Can't wait.
      Ed
      • 2 Years Ago
      The new Mexican labor will only improved the crappy reliability of their vehicles.
        Timothy Tibbetts
        • 2 Years Ago
        @Ed
        Crappy reliability? Where did you get that from?
          Herbie
          • 2 Years Ago
          @Timothy Tibbetts
          Besides the enthusiast despised CR, TTAC also tracks reliability (plus you can google reliability issues.) As a premium marque, I think Audi is "only" just about average. I resent "just average" if I'm buying a German vehicle - I want outstanding.
        Jon Brown
        • 2 Years Ago
        @Ed
        They're about as reliable as any other car.
        Squeaky wheel
        • 2 Years Ago
        @Ed
        Is not who builts them , is who takes care of the quality... And the VW quality issues, are mostly gremlims that arised from poorly choosen suppliers, some from China and Brazil... There is no liabilty on the assembly but in the pieces by theirself. They were going to fail even if a Jetta was assembled by Prince Charles.
      prighello
      • 2 Years Ago
      Time to repeal NAFTA.
      Giovanni Gutierrez
      • 2 Years Ago
      Great news fOr my Country, like it or not Mexico is on the map!! Viva Mexico!
      i.own.your.ass
      • 2 Years Ago
      i'll take a mexico made german car over an US made domestic any time of the day.....
      Squeaky wheel
      • 2 Years Ago
      Esteeee.... Hey gringos... Your Escalades are being built in Mexico, The Fusion is made in Mexico, the Lincoln MKS is made in Mexico, Jettas too... in fact... please, check first if your car is not made by a "paisano" before you post.. And be thankful with Jesus for having a nice truck to drive.. by the way Jesus works in the second shift at Saltillo RAM Assembly Plant, if you want to thank him personally. here is the list of cars made in Mexico for you Cadillac Escalade / EXT Cadillac SRX Chevrolet Avalanche Chevrolet Aveo Chevrolet Sonic Chevrolet HHR Chevrolet Silverado and Silverado Hybrid Dodge Journey Fiat 500 Ford Fiesta Ford Fusion and Fusion Hybrid GMC Sierra, Sierra Hybrid and Sierra Crew Cab Honda CR-V Lincoln MKZ and MKZ Hybrid Nissan Sentra Nissan Versa Ram 2500/3500/4500/5500 Toyota Tacoma Honda Accord Volkswagen Jetta/Jetta SportWagen Volkswagen New Beetle
        Rob
        • 2 Years Ago
        @Squeaky wheel
        Agree with your general sentiment, just a fact correction... the Chevy Sonic for U.S. consumption is built in Orion Twp., MI
          Squeaky wheel
          • 2 Years Ago
          @Rob
          The plant came online this week, is going to replace Korean imports. We got ours from Korea. Now they are made locally Thanks for the correction
        Skicat
        • 2 Years Ago
        @Squeaky wheel
        Starting next year, all Ford Fusions sold in the North American market will be built in Flat Rock, MI. Ford is moving production there to use the plant capacity idled by Mazda moving Mazda6 production back to Japan.
        Steve
        • 2 Years Ago
        @Squeaky wheel
        The Chevy Aveo is no longer sold in the USA. It was replaced buy the Chevy Sonic which is built in the USA. The Chevy Silverado and Cadillac Escalade are also built in the USA as in Mexico. The new Ford Fusion will also be built in Michigan.
        Eco-Dork
        • 2 Years Ago
        @Squeaky wheel
        Hey Gringos?! How about I start my reply with "hey wetbacks"? Funny how it's ok to be a racist when you are a member of a perceived "victim group" grow up.
      Groagun
      • 2 Years Ago
      I think they will come to regret this decision. If you ask candidly, other auto makers who have production facilities in Mexico, not just whole cars but parts as well, many have wished they had located elsewhere. The lure of cheap labor comes with a price.
        Dan Paredes
        • 2 Years Ago
        @Groagun
        Did you even read the post? VW already have 2 plants in Mexico.
      MJC
      • 2 Years Ago
      So many comments with no factual basis. The truth is that: 1.) A Mexican VW plant will be held to the same quality standards as one in Germany 2.) Audi/VW reliability in very recent years is quite good.
        KAG
        • 2 Years Ago
        @MJC
        You never owned a Mexican built VW, they are pure crap
        Kumar
        • 2 Years Ago
        @MJC
        So you mean car-making robots don't have a nationality?
        Xeong5
        • 2 Years Ago
        @MJC
        Is that why they stopped making the Golf/Rabbit in Mexico?
      Luciano
      • 2 Years Ago
      Great. An audi that reeks of fried tortillas... and cheap laundry detergent.
      Martin
      • 2 Years Ago
      Yes lets make luxury cars in Mexico, where they make VWs. That way it won't just be the VWs that have a history of bad reliability and quality in the America, but Audis too. They really should make them either in the US or preferably in Canada.
        superchan7
        • 2 Years Ago
        @Martin
        VW's German-built cars are not any more reliable, especially the more expensive ones. It's the design of the parts that is the problem, more so than the location of final assembly.
        Zoidberg
        • 2 Years Ago
        @Martin
        news flash, Audi's are already bad at reliability! Mexico has nothing to do with it, plenty of BMW's made in the US are very unreliable as well.
        Alex Rodriguez MacFa
        • 2 Years Ago
        @Martin
        If I'm not mistaking, the MB ML and BMW's X5 are two of the most unreliable CUVs in the market and they're both built in the US.
      Richard
      • 2 Years Ago
      So the cheaper labor will translate into more competitive pricing? Yeah, I didn't think so...
        Kumar
        • 2 Years Ago
        @Richard
        Reasons given in the past have been more along the lines of having a more stability against currency fluctuations that have occurred over the past decade that have affected both German and Asian import pricing and profits. Better pricing >>> no. We'll still see only the higher end Audies, MBs, and BMWs over here.
        Squeaky wheel
        • 2 Years Ago
        @Richard
        Same pricing, same quality... More profit. Aren't those Germans smart?
      over9000
      • 2 Years Ago
      lolll why not China
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