Posted on Wednesday 7 May 2008
A number of European carmakers are seriously considering starting production in the U.S. to take advantage of the low dollar and to improve production and logistic efficiencies of popular import models in North America. Volkswagen has already confirmed it’s looking for a new site in the U.S. to build a factory and execs at its premium Audi subsidiary have on several previous occasions revealed plans for a U.S. plant as well.
Audi’s CEO Rupert Stadler recently gave the strongest indication yet that Audi was seriously considering a U.S. plant, telling shareholders at the carmaker’s annual general meeting that U.S. production would “tremendously” benefit the firm.
Currency fluctuations aren’t the only reason for a new plant. Stadler also pointed out that rising raw material costs as well as the carmaker’s long-term strategy of boosting sales in North America were also key reasons for a U.S. site, reports Automotive News.
One major advantage Audi has is that it can borrow capacity at VW’s future American plant. The most likely vehicles to be built at the new site will be SUV models such as the Q7 (pictured) or the upcoming Q5, as the U.S. remains the biggest single market for such models.
Mercedes and BMW have got to be wary. Audi’s expanding at a much faster rate than either marque.
The front end of the Audi pictured above is unspeakably ugly.