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Friday, November 13, 2026Nov 13

Audi may lean to Mexico for new auto plant, report says

photo Audi unveiled the new S4 luxury vehicle at the COBO Center during the 2012 North American International Auto Show.

Volkswagen‘s luxury brand Audi may be leaning toward Mexico for a North American assembly plant, according to WardsAuto, an automotive industry website.

The report cited Mexico’s lower labor costs and also said a facility there would allow Audi to export vehicles to South America and even to Europe if necessary, without paying excessive import and export tariffs.

A top Audi executive at the North American International Auto Show last week in Detroit cited Chattanooga as an “attractive potential location” for its first North American production plant.

But Audi of America President Johan de Nysschen said the VW brand already has aggressive plans for its Chattanooga site. He added, though, that there was no final decision yet.

In addition to a portion of the 1,300 acres in Enterprise South industrial park where VW built its local plant, the company has an option for 1,000 adjacent acres.