Audi Chose San Jose Chiapa City in Mexico for its New Plant image

Audi recently announced the location of its new plant in Mexico, the city of San Jose Chiapa, where it will manufacture the new Q5 SUV.

“Good infrastructure, competitive cost structures and existing free trade agreements played a significant role in the choice of Mexico,” said Audi Chief Executive Rupert Stadler.

The automaker will invest $1.3 million for the first stage of the plant, which will be built in the city of San Jose Chiapa, part of Audi’s “Strategy 2020” plan. The construction of the facility will begin in mid-2013 and vehicles are expected to roll off the assembly line by 2016. The initial production capacity will be 150,000 units annually and the first model prepared for production is the next-generation Audi Q5 compact crossover, which will feature new powertrains (including a hybrid and a diesel) and a refreshed front fascia.

Audi chose this city due to its infrastructure, centralized location, favorable prospects for future employees, but also to get closer to accomplish its “Strategy 2020” plan, according to which the automaker aims at becoming the top-selling luxury car brand in the entire world by 2020, surpassing BMW and Mercedes-Benz. This plan would be quite a challenge for Audi who saw the Q5 August sales down 12.8%.