Audi Plans to Double Production at Mexican Plant image

Audi plans to double production at a Mexico plant to 300, 000 units and increase capacity in Brazil, in an attempt to surpass BMW in the Americas.

Audi’s new plant in Mexico, which will manufacture 150,000 Q5 SUVs annually beginning with 2016, will have enough room for the addition of a second model such as the Q6 SUV, according to CEO Rupert Stadler.

“In 2020 every seventh Audi from our worldwide production will go” to North America, Stadler said in a speech at the groundbreaking ceremony in Mexico over the weekend. “Then we have reached our goal and strengthened America as a third pillar of our sales in addition to Asia and Europe.”

During the first quarter Audi accounted for more than half of VW’s profit and now it plans to source at least 65% of the San Jose Chiapa plant’s content . Audi’s investment of $1.2 billion will create 3,800 jobs in the Mexican city. This year Audi will decide if it will begin manufacturing vehicles in Brazil.

“From a strategic point of view it would be good to be there because the economy is developing and we believe the number of people who can afford an entry-level premium car is set to grow,” Martens said.

Source: Bloomberg