Audi a year away from decision on U.S. production

[PanterroR]

A number of European carmakers are considering starting production in the United States to take advantage of the low dollar and to improve production and logistic efficiencies of popular import models in North America. Volkswagen recently announced plans to build a $1 billion factory in Chattanooga, Tennessee, and now the carmaker’s CEO Martin Winterkorn has revealed that its Audi subsidiary could also use the site for production of some of its models.

Audi has set itself a goal of building 1.5 million vehicles per year by 2015 and to produce at that level the carmaker will need to expand its current capacity. Speaking with Automotive News, Winterkorn explained that Audi needs to build vehicles in the U.S. if it is to reach its goal.

The big question now remains which model would Audi likely build at Chattanooga? Winterkorn said the decision comes down to product. "They should have the right product for the market," he said. The most likely vehicles would be the Q5 and Q7 SUVs, and their respective hybrid variants.

He also explained that a majority of the American made vehicles need to be sold locally. A similar policy will apply to VW’s new mid-sized car, which Winterkorn confirmed would only be sold in North America.

The final decision for Audi’s U.S. production plans is expected to be made next year.


Source: Audi a year away from decision on U.S. production - MotorAuthority - Car news, reviews, spy shots

 

[JadeVetti]

Plants across the US are closing or laying off workers, yet they plan on building a billion dollar factory here still? German car makers are truly taking a big risk.

They should look to the other Bavarian plants based in the US to consider if such a move is truly worth it or not.

 

[warot]

Plants across the US are closing or laying off workers, yet they plan on building a billion dollar factory here still? German car makers are truly taking a big risk.

They should look to the other Bavarian plants based in the US to consider if such a move is truly worth it or not.

Not necessarily a bad move. With the exchange rate the way it is, there are many advantages to moving production from Europe to the US.

The layoffs that are happening in US for BMW and MB are also happening in Europe. Also doesn't help that these two plants only build bigger cars.

 

[Merc1]

Audi and VW have to build in the U.S. if they ever plan on actually making some money in the U.S. For them even now is right time to build a factory here if they plan on staying here and making money. You better believe that if VW/Audi starts hurting at home they're going to look at the money-losing U.S. operation and think aloud as to why they're still here. We don't want that.

M

 

[Centurion]

Not necessarily a bad move. With the exchange rate the way it is, there are many advantages to moving production from Europe to the US.

At the sametime it's a major risk since currencies fluctuate. Last november one pound was worth 2.10 dollars but the dollar has recovered, and now one pound is worth just 1.58 dollars.

 

[ateekt]

I'm damn sure, they're gonna stay! I was reading in a Latin-American Spanish mag last month that Hyundai & Audi are 2 brands, getting popularity day by day in U.S & also, their customers are happy with both, service & products! Also new shapes will get heat this year & bring more customers. Audi will be just fine with next A4, A5, R8 & Q5!

A friend of mine (located in U.S) was into Jag, Lexus & Mercs always & never switched to any other brand. He by chance got him a S6 & after a year, he ended up buying a new A4 for his wife! Acording to him, Audi is way better & more reliable car than a Merc & Jag! That guy is a high-end car bug & if he say this, it matters!

I was at a dealer last month to check the trade-in value of my 99' 528i for a 01' 325i & I was surprised with what they said. They offered (& convinced) me a 02' A4 (previously owned by the sales-manager) & he said, if I get the Audi, I won't go back to Bimmer & I said, no way... not in 100 years... nothing comes close to Rwd push!