VW's Audi sets Mexico factory

VW's Audi sets Mexico factory

April 18th, 2012 by Mike Pare in Local - Breaking News

Volkswagen's Audi luxury-car unit said today it will put up its first North American factory in Mexico.

"As an established car-making location, Mexico offers an excellent economic basis for Audi production operations," said Rupert Stadler, chairman of the board of management for Audi AG, in a statement.

The exact location for the new plant, which will manufacture a sport utility vehicle starting in 2016, will be chosen by Audi later this year, the company said in a press release.

Chattanooga and Tennessee economic developers had sought to have the factory built at Enterprise South industrial park near the existing VW plant.

However, state Economic and Community Development chief Bill Hagerty told the Times Free Press last week that a trade issue hurt the state's chances. The Audi announcement appeared to confirm that assessment.

"Good infrastructure, competitive cost structures and existing free trade agreements played a significant role in the choice of Mexico," said Stadler.

For more, see Thursday's Times Free Press.