Just as we predicted, Audi has chosen Mexico as the site of their newest manufacturing plant. A specific site for the plant will be selected later in the year, with production of an unnamed SUV (said to be the Q5) starting in 2016.
While rivals such as Mercedes-Benz and BMW, Audi chose Mexico to capitalize on South America’s growing market (specifically Brazil) and to avoid a 10 percent duty levied against American built cars imported to Europe. Volkswagen was apparently pushing for their Chattanooga, Tennesse plant to stay close to suppliers and for marketing reasons (how about a “Made in America” Audi?).