Audi building a production facility in Mexico - spotted on FB, comments not surprising

[Jman5000]

http://audiusanews.com/newsrelease.d...ts-drive&mid=1

Audi to build production plant in Mexico, maintaining its drive for internationalization
• Supervisory Board welcomes plans for Audi plant in Mexico
• Rupert Stadler, Chairman of the Board of Management of AUDI AG: “Excellent basis for sustainable growth”
• General Works Council Chairman Peter Mosch: “Stepping up production capabilities guarantees capacity utilization of main plants”
• Exact Location to be selected later this year – production to begin in 2016

The decision has been made: AUDI AG Board of Management and Supervisory Board of AUDI AG approved plans to build a North American plant in Mexico. The exact location for the new plant, which will manufacture an SUV model starting in 2016, will be chosen by AUDI AG later this year.

“As an established carmaking location, Mexico offers an excellent economic basis for Audi production operations,” declared Rupert Stadler, Chairman of the Board of Management of AUDI AG. Mexico is one of the world’s top ten automotive locations and offers a blend of tradition and experience. The group parent Volkswagen already has an automotive plant in Puebla and an engine plant in Silao. “Good infrastructure, competitive cost structures and existing free trade agreements played a significant role in the choice of Mexico,” emphasized Stadler. “This trailblazing move will help us safeguard our position in the world market. Our German locations, too, stand to benefit from it.”

When I saw this on Faceyspace, I figured the old chestnut of the Emkay 4 world: "Mexico or Germany" would rear it's mouth-breathing visage. I was correct.

[VDUBfanatic]

Although, Jman, was it not also the battle of the "WVW" GTI's versus the "9VW"'s? I remember that one from my days in the MKIV forum...

This has the potential to be a brilliant business move, as new tariffs and trade agreements have materialized since the building of the BMW & MB US factories.

In regards to the labor itself, it's worth noting that the Mexican people do not build subpar cars, car companies build subpar cars. No one sets out to build an inferior product. But the lack of training, inspection, and re-training contributes to the perception as such.

[JOES1.8T]

Alrighty then... at least my future 2014 model A3 (hatch or sedan) should still be built in Germany by time I PCS back to the States from Germany.

[MatchStick]

[GoRacers]

In regards to the labor itself, it's worth noting that the Mexican people do not build subpar cars, car companies build subpar cars. No one sets out to build an inferior product. But the lack of training, inspection, and re-training contributes to the perception as such.

This is all that really needs to be said in this thread. However, I'm sure this will get blown out of proportion anyway.

[Lucian1988]

cheaper audi SUVs? **** yea im down!

[Old Windy]

HIGHER PROFIT audi SUVs? **** yea im down!

FTFY. Sure hope it does not suffer of the same "high quality controls" of other manufacturers from the area.

[dubjager]

This has the potential to be a brilliant business move, as new tariffs and trade agreements have materialized since the building of the BMW & MB US factories.

In regards to the labor itself, it's worth noting that the Mexican people do not build subpar cars, car companies build subpar cars. No one sets out to build an inferior product. But the lack of training, inspection, and re-training contributes to the perception as such.

Amen. Thank you for saying that. Seriously, almost all the BMW's in Mexico are made in Toluca. That said, I haven't noticed any differences in quality or anything of the like between my friends 330i in Mexico and a friends 328i here in the US.

[zerind]

As long as these are fitted somewhere on the car I'm down.

[what]

NAFTA

[SSLByron]

NAFTA

I know, right? The EU got it right. Much better to overpay for the same quality of labor.

(And I know that's not what you were referring to, but I couldn't resist )

[MrRline]

I won't be buying a Q5 and I basically live in what I consider the extension of Mexico aka Arizona. My reasoning is not because I have problems with Hispanic people, but because after watching them i've learned that quality control goes out the window compared to speed of work. That's not something I'm will to take a 40,000 dollar risk on.

[SoCalDubber]

I won't be buying a Q5 and I basically live in what I consider the extension of Mexico aka Arizona. My reasoning is not because I have problems with Hispanic people, but because after watching them i've learned that quality control goes out the window compared to speed of work. That's not something I'm will to take a 40,000 dollar risk on.

Audi is basically going to send a bunch of parts to Mexicans in a work shed and ask them to finish it as soon as possible... It's how everything is done in Mexico, duh.

[MrRline]

Audi is basically going to send a bunch of parts to Mexicans in a work shed and ask them to finish it as soon as possible... It's how everything is done in Mexico, duh.

It's that reason that I won't sending my business to Audi in the form of a Q5.

[Bakounine]

FYI for the anti-Mexico folks: the TT is built in Hungary. Yes, COMMIES!! The TT must therefore be considered subpar in terms of quality and craftmanship.

//Sarcasm

[eweu]

FYI for the anti-Mexico folks: the TT is built in Hungary. Yes, COMMIES!! The TT must therefore be considered subpar in terms of quality and craftmanship.

//Sarcasm

The only problem with your sarcasm is that there are a fair number of people that do think along those lines.

[eweu]

Although, Jman, was it not also the battle of the "WVW" GTI's versus the "9VW"'s? I remember that one from my days in the MKIV forum...

Yeah, but who doesn't miss the "la cucaracha" door chime found in the MkIII Golf? Maybe it will come back in a Q5!

[Double-V]

The quality of the cars won't be an issue. It's the fact that Mexico is a dirty smelly country where crime and murdering runs rampant that's the issue. I don't need body parts in my A4.

[mraguilar]

Yeah, but who doesn't miss the "la cucaracha" door chime found in the MkIII Golf? Maybe it will come back in a Q5!

Really? I would pay top Dollar for one of these chimes installed in my car.

[pentaxshooter]

Hopefully they will all come with a

[Bakounine]

The only problem with your sarcasm is that there are a fair number of people that do think along those lines.

Any more so than any of the German made Audis? I don't think so.

[Uberhare]

Are sales that good for Audi? Buy Ducati, build a new manufacturing facility?

[eweu]

The quality of the cars won't be an issue. It's the fact that Mexico is a dirty smelly country where crime and murdering runs rampant that's the issue. I don't need body parts in my A4.

Right. Given that criteria, I'd much rather get my car from, you know, Detroit.

[Remedy]

What is actual labor cost between Mexico and the United States? How much are companies actually saving by building in Mexico as opposed to the United States?


Or are the issues just really bureaucratic?

[Aonarch]

FTFY. Sure hope it does not suffer of the same "high quality controls" of other manufacturers from the area.

[acuraudi]

The quality of the cars won't be an issue. It's the fact that Mexico is a dirty smelly country where crime and murdering runs rampant that's the issue. I don't need body parts in my A4.

Not sure if you've ever been to Detroit or Flint, but..


Edit: got beaten to it.

[Remedy]

VAG probably decided on Mexico because they have universal health care, and wouldn't have to deal with providing health care like they would in the USA. VAG building a plant in Tennessee is because they want to emulate the success Hyundai has in the USA after they built a plant in Alabama. To appease the over nationalistic Murrikans. Status symbols like Audi's, BMW's, etc. will always have buyers, no matter where they're built.

As well as no Unions in Mexico?

[Shomegrown]

What is actual labor cost between Mexico and the United States? How much are companies actually saving by building in Mexico as opposed to the United States?


Or are the issues just really bureaucratic?

That's not it. It's simply taxes.

This plant will re-supply vehicles to the European market. If they were made in the US, they'd be smacked with an extra 10% import tax. Made in Mexico = no extra tax.

I'm not hip on the idea personally, but whatever.

[acuraudi]

VAG probably decided on Mexico because they have universal health care, and wouldn't have to deal with providing health care like they would in the USA. VAG building a plant in Tennessee is because they want to emulate the success Hyundai has in the USA after they built a plant in Alabama. To appease the over nationalistic Murrikans. Status symbols like Audi's, BMW's, etc. will always have buyers, no matter where they're built.

Their given reason, whether or not it's the whole truth, is the 10% tariff on US-Built vehicles headed to Europe. Makes sense, if they intend to use Mexico as the world base for one or two models.

I think really the UAW's lobbying efforts in Chattanooga probably scared Audi right into Mexico. I can't say I blame them, I'd have made the same decision. I sell Audis and live in KY, so I'd have loved to see a Chattanooga plant happen. But I grew up in Detroit and I've worked for Ford, GM, and Chrysler as a contractor, so I know what a burden the UAW can be.

[JuanManuelFangio]

BMW builds cars in South Carolina... Just sayin.

[Spinnaker]

BMW builds cars in South Carolina... Just sayin.

[bzcat]

That's not it. It's simply taxes.

This plant will re-supply vehicles to the European market. If they were made in the US, they'd be smacked with an extra 10% import tax. Made in Mexico = no extra tax.

I'm not hip on the idea personally, but whatever.

Also cars made in Mexico can enter Brazil duty free... that's a large emerging market for Audi.

[MrKevkevL]

Hopefully there will still be an option to buy the German-built version, like how you can choose between the South African and German made BMW 3-series here in the States. If I'm in the market, I'd much rather have a German built car even if that meant paying more.

Nothing against Mexicans, but "luxury" and "Mexico" are generally on opposite ends of the spectrum.

[The Ninja]

Are there enough workers left in Mexico. I thought they were all over hear.

[juventuss]

Hopefully there will still be an option to buy the German-built version, like how you can choose between the South African and German made BMW 3-series here in the States. If I'm in the market, I'd much rather have a German built car even if that meant paying more.

Nothing against Mexicans, but "luxury" and "Mexico" are generally on opposite ends of the spectrum.

and Hungary is better ?