Audi may not build a plant in Brazil until local laws are transparent image

Volkswagen AG’s premium carmaker, Audi AG will not build a new factory in Brazil until the local laws are clear and transparent, CEO Rupert Stadler said on Saturday.

“We are studying now some details, but even the government is not really clear when it comes to localization, what type of parts do they mean?”
‘I’m going to Brazil’ because you don’t know the details.”

The announcement comes shortly after the German automaker has broken ground on a $1.3 billion assembly plant in Mexico where it plans to build 150,000 cars a year. Besides the Q5 SUV, the company is also planning three new sporty SUVs by 2020.

Brazil is the world’s fourth largest car market in the world and as expected most of the automakers are opening factories there to avoid high taxes and tariffs on imported vehicles.

Last month car sales climbed to a record for the month, while vehicle production was up 39.2 per cent compared to the month before.
In 2005, Brazil exported almost 900,000 vehicles, but last year the country exported only 442,000 vehicles and imported about 795,000.

In March Audi sold 369,500 vehicles worldwide, extending year-to-date deliveries by 6.8 percent.