German Audi to Set up Plant in Mexico to Supply US Market

2012-05-07

The board of directors of the German automaker Audi Group has approved the Mexican plant set-up program, its main product targeting on jeeps. In the future, Audi will directly supply the US market though its Mexican plant. Audi overturned its parent company Volkswagen’s plant set-up plan in Chattanooga, Tennessee. Rupert Stadler, President of Audi, expresses his preference of Mexico, highlighting that Mexico is highly flexible and a low labor cost market among the Latin American countries and with a well-built infrastructure, Mexico has also joined the free trade agreement. The parent company Volkswagen has already produced cars and engines in Puebla and Silao, Mexico respectively. The car sales of Audi in 2011 amounted to 117,600 units, increasing 16% compared to 2010. It is expected that through the establishment of the new plant, Audi would sell 200,000 units of cars in the US in the next few years.