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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