Tuesday, January 29, 2008

US: Audi considering first plant in North America

US: Audi considering first plant in North America
By Glenn Brooks
15 January, 2008
Source: Automotive World

According to a report in The Detroit News, Audi is considering building a production plant in the US. The Ingolstadt-based brand's chief executive, Rupert Stadler, says that while Volkswagen is also close to deciding on whether or not to construct a second North American production facility, Audi would not necessarily share this factory.

"We're considering that," Stadler said when asked on the eve of the Detroit motor show if Audi might build a US plant.

Even with the weak dollar, while the brand's US sales remain at the current 90,000upa level, the chief executive maintains that it makes little sense to build cars in the US. "But if you're dreaming about a 200,000 sales base, you have to make up your mind what you have to do," he added.

The German luxury brand sold less than half as many cars and SUVs as BMW or Mercedes-Benz in the US market in 2007, with sales of 93,508 units. This compares to 253,316 Mercedes-Benz cars and SUVs and just under 300,000 BMWs cars and SUVs, not counting Mini sales.

Audi's medium term target for the local market is 200,000 units, part of a plan to lift production by nearly 50% to 1.5 million vehicles by 2015. Like Infiniti, Audi has watched the sales of Lexus (Ontario), BMW (South Carolina), Mercedes-Benz (Alabama) and, to lesser extent, Acura (Ontario), rise steadily as each of those brands has opened and then expanded plants.

The Volkswagen subsidiary also believes it can convince luxury car buyers in North America to embrace diesel technology, something only Mercedes-Benz has been able to do thus far, albeit on a small scale.

"In Europe, already 50% of the car mix is diesel, and customers choose diesel because it's more fuel-efficient. Why shouldn't it also work here?" Johan de Nysschen, Audi of America's executive vice president ponders in the same Detroit News report. "The driving characteristics of diesels today are totally suited to American driving conditions," he adds.

As well as new, more powerful versions of its TT coupe and roadster, Audi is using the Detroit show to premiere a concept version of its R8 supercar powered by a twelve-cylinder diesel engine, drawing parallels with its Le Mans 24 Hours-winning racing cars.

Neither Stadler nor de Nysschen would be drawn on stating a date for a decision on a possible US assembly plant.


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