Audi has announced plans to build a new production facility in San José Chiapa, Mexico. It will build the next-generation Q5 in 2016.

Audi has announced plans to build a new production facility in San José Chiapa, Mexico.

Considered a "major milestone" for the company, the San José Chiapa region was chosen for its "central location, good logistics links and proximity to highly reputable universities and colleges of advanced technology." Audi was considering a U.S. plant, but cited "competitive cost structures and existing free trade agreements" as a key reason for selecting Mexico instead.

Construction will begin in mid-2013 and the first model is scheduled to roll off the assembly line in early 2016. The plant will build the next-generation Q5 and have an annual output of 150,000 units.

According to Audi Chairman Rupert Stadler, "The production site in San José Chiapa meets various key requirements of our global growth strategy and we can step up our activities in American markets. We are delighted that the Mexican government and the state of Puebla are so supportive of our project."

 

Audi selects San José Chiapa, Mexico for new production plant