Audi Picks Mexico For New Plant

Derek Kreindler
by Derek Kreindler
audi picks mexico for new plant

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?).

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  • Good ole dayz Good ole dayz on Apr 18, 2012

    Consider that it may be a political calculation. The VW plant in TN was baked in the cake before the UAW-GM-Chrsler taxpayer bailout. But seeing how the Obama administration treated the "secured" bondholders in order to give preferential treatment to the UAW (arguably unlawfully, i.e., it would be if they weren't the ones also deciding what is / isn't legal) -- and screwed the taxpayers in order to hand the UAW a big ownership interest in GM and Chrysler to the UAW (again arguably unlawfully) -- would you be inclined to invest hundreds of millions of dollars in a new auto plant in the present Obanana-republic?????

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    • Fastr_thanu83 Fastr_thanu83 on Apr 20, 2012

      I can see you have this hatred about the UAW, you are very misimformed about the unions. Try working in a GM factory, its not that easy the myths of people playing cards, drinking on the job pressing a button all day skipping work, are all myths. Try working at a assembly plant, I bet you couldnt do it, sure you may think putting a taillight in a vehicle is all you do, however you have to route the harness install at least 2-3 bulbs fasten the bulb into the lamp assembly, install the assembly onto the vehicle, the fasten the screws, or reach in fasten the nuts on the stud. Sounds easy????? you have to do 4 minute. In the summer time the temp get to 110-125 degrees inside, cant wear shorts. And if you work at the foundry its even worse. Or howabout the motor line installing exhaust manifolds, you got 6 of those a minute. Work in a assembly plant and tell me you dont need a union, I could go on and tell you more. Bottom line is there isnt any cake jobs. So what is the problem with the UAW owning stake into the companies? Better than a bunch of fatcat rich guys owning it.

  • OldandSlow OldandSlow on Apr 19, 2012

    Seriously, I would have chosen Canada over Mexico to build an assembly plant for a premium brand. In the long term, Canada is a much more stable place to operate a business. Mexico on the other hand is a security nightmare.

  • Lon888 Lon888 on Apr 19, 2012

    When the narco-terrorists start shooting big holes in their plant and their execs start getting kidnapped, they'd wish they chose the US.

  • VinceY VinceY on Apr 19, 2012

    How does Audi building a plant in Mexico help them to "avoid 10 percent duty levied against American built cars imported to Europe" and "While rivals such as Mercedes-Benz and BMW..." What are they doing exactly? I am really confused.