Audi Plans Aggressive Global Expansion image

Audi plans an aggressive global expansion, including building plants in the US and Brazil.

Audi AG CEO Rupert Stadler said after breaking ground to the new plant in Mexico that this facility will manufacture 150,000 Q5 SUVs beginning with 2016, which will easily sell in the US and Europe. He said that there is already a 7-month waiting list for the Q5. As demand for Audi’s models continues to increase, the automaker will have to consider the expansion of the Mexican plant or building new facilities in South and North America.

“That is absolutely open in the future,” said Stadler. “It always depends what car you are discussing, where is the main market, is the framework the right one?”

Besides the fats-increasing demand in the US, Audi is also aware of the booming Brazilian market, but the government regulations regarding production in this country makes a plant decision more difficult. Audi of America CEO Scott Keogh sais that even if Audi is still behind its rivals BMW and Mercedes in the luxury market , the company will soon begin to narrow the gap.

“Going forward, a big driver will be the emergence of the luxury market A segment,” Keogh said. “This segment is around 30,000 units today but is expected to hit 190,000 vehicles.”

Source: The Detroit News