Audi Opening Factory in Mexico

Audi has made a second major announcement today, although this one will probably get lost in the news of it buying Ducati. Audi will build a factory in Mexico that will be ready in 2016 to construct a future SUV. It has not yet selected an exact location for the new plant. 

“The new plant will become a fully fledged member of the Audi production network and will implement the very latest standards in terms of resource efficiency and production processes. Audi is all about premium quality no matter what the location," said Frank Dreves, Board Member at AUDI AG for Production.

The next step for Audi is to determine where to build the factory. Its priority is being able to find qualified workers with an effective infrastructure for schools and universities in the vicinity. It also needs to find a place with available real estate and good logistics. 

Audi plans to take advantage of free trade agreements within Mexico to be able to ship vehicles to the US and Canada. That should lower Audi prices in those areas without changing the vehicles. That will make them more competitive in the market. 

By opening a factory in Mexico, Audi says that it will be able to use its major factories in Germany to build future electric vehicles. 

“In launching production operations in Mexico, Audi will enhance its own competitiveness and move significantly closer to its sales target of two million units per year by 2020,” said Peter Schwarzenbauer, Audi board member for Marketing and Sales. 

Audi Purchases Ducati for Undisclosed Sum

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