September 4, 2012

New Audi plant in Mexico: San Josť Chiapa the chosen location
Source: Audi Media

∑ Audi Board of Management and VW Group Management decide on location
∑ CEO Rupert Stadler: "Important for the American market and for our global growth"
∑ Construction work to start in mid-2013 - start of production 2016

Ingolstadt - More than a dozen locations were looked at, compared and evaluated. Now the decision has been made: Audi will build its new plant on the American continent in San Josť Chiapa, in the State of Puebla, Central Mexico. This was decided today by the Audi Board of Management and the Group Management of Volkswagen. The new plant marks a major milestone in the growth required in Audi’s Strategy 2020.

Site conditions, logistics links, infrastructure, well-qualified employees and living quality - these were the decisive criteria for the choice of location. “The production site in San Josť Chiapa meets various key requirements of our global growth strategy and we can step up our activities in American markets,” said Rupert Stadler, Chairman of the Board of Management of AUDI AG. The chosen location is an ideal base from which to supply international markets from Mexico. He continued: “We are delighted that the Mexican government and the state of Puebla are so supportive of our project.”

After in-depth talks with the governments of various Mexican federal states, San Josť Chiapa was clearly identified as a suitable location. The Mexican government and the State of Puebla were very supportive of the selection process. “We congratulate Audi on this decision and are sure that the location meets the ideal criteria for fulfilling the Company’s strategic goals,” emphasized Rafael Moreno Valle, Governor of the State of Puebla: “We are proud that Audi, a leading European premium manufacturer, has chosen our country as a future production base.” The Governor  added that the Company will be welcomed with open arms in Mexico.

“The new plant in San Josť Chiapa will be the most modern in the Audi production network for its efficient use of resources and production methods,” remarked Audi Board Member for Production Frank Dreves. “The Audi Production System means we build cars of premium quality at every single one of our sites.”

Other factors in favor of San Josť Chiapa are its central location, good logistics links and proximity to highly reputable universities and colleges of advanced technology.

“When deciding on a new site, it is important that we can find well-qualified employees there. Internationally recognized schools for the children of employees sent on assignment to Mexico are also crucial,” emphasized Audi Board Member for Human Resources and Labor Director Thomas Sigi. The infrastructure of schools and universities was therefore a prime criterion when choosing the site. “Quality of life, healthcare provision and the security of our employees are other major factors,” added Sigi.

The Audi Works Council, too, welcomes the Company’s decision. General Works Council Chairman Peter Mosch declared: “The new location in Mexico will unlock further growth for us, and also protect capacity at the main plants. The latter will increasingly step into the role of lead plants for our technologies in developing modern production methods, using new materials and joining techniques, and with regard to electric mobility. For the employees, this solution offers not just secure jobs, but also additional career prospects. And we have concluded an employment guarantee agreement with the Company until the end of 2018.”

Audi will build the successor to its current Audi Q5 SUV model at its Mexican plant, with a planned annual output of 150,000 units. Production is scheduled to begin in 2016. Once the agreements have been signed, work can begin on preparing the site in San Josť Chiapa before the end of the year. Construction work on the plant buildings should start in mid-2013.


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