Audi Picks Mexico For New Plant
April 18th, 2012 2:59 PM Share
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?).
Published April 18th, 2012 2:59 PM
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8 of 19 comments
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?????
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.
When the narco-terrorists start shooting big holes in their plant and their execs start getting kidnapped, they'd wish they chose the US.
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.