MotorAuthority

Audi considering delay of decision on U.S. production

Posted Fri Nov 28 2008 6:52 AM by Alex Kaufmann

Audi needs to build vehicles in the U.S. if it is to reach its goal of selling 1.5 million vehicles per year by 2015, but American demand is currently low

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 earlier this month the carmaker’s CEO Martin Winterkorn revealed that its Audi subsidiary could also use the site for production of some of its models. A decision on the matter had previously been expected in early 2009, but could now be delayed due to the very weak market conditions in the U.S.

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. This week, however, Audi CEO Rupert Stadler said that he couldn't be certain that the timing for the decision on whether to launch U.S. production would be right in early 2009, and might consequently have to wait.

That said, Audi's need to expand production and production facilities is clear if it is to meet its goals, so a U.S. foothold is almost a certainty, with the only question being when it will be established. Once Audi has U.S. production lines running, the question becomes which model Audi will 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.

A date for the final decision for Audi’s U.S. production plans has not been set.

story Tags:

• Audi
• Chattanooga
• Industry
• Martin Winterkorn
• Rupert Stadler
• Tennessee
• U.S. Production
• Volkswaagen
• VW
• Winterkorn

Reader Comments

• Fri Apr 18 2008 10:59 AM

  chris says

  yep, so that means its going to be a volume car like the A3 or A4.

• Fri Apr 18 2008 6:25 PM

  Renton says

  If you don't build cars here, they will be too expensive to import.
  
  BMW figured this out a long time ago.
  
  BMW uber Alles

• Fri Nov 28 2008 10:27 PM

  NoNameDenton says

  Probably be the A4, since the Jetta is going to be build here along with the Passat replacement