Audi has chosen San José Chiapa in the central Mexican state of Puebla as the location for its first car plant in the Americas. The company will build the replacement for the Q5 there from 2016 at the rate of 150,000 cars a year.
More than a dozen locations were looked at, compared and evaluated, the company states. The site was selected by the Audi Board of Management and the Group Management of Volkswagen.
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“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,” said Rupert Stadler, chairman of the Board of Management of Audi AG. “We are delighted that the Mexican government and the state of Puebla are so supportive of our project,” he added in an issued statement.
After in-depth talks with the governments of various Mexican federal states, San José Chiapa was clearly identified as a suitable location. Site conditions, logistics links, infrastructure, well-qualified employees and living quality – these were the decisive criteria for the choice of location, the firm notes. There is already of course a large Volkswagen plant in the same area. The Beetle and Jetta are manufactured there (Puebla).
“The new plant in San José 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 favour of San José 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,” Audi’s board member for Human Resources and Labour director Thomas Sigi adds. 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,” said Sigi.
Once the agreements have been signed, work can begin on preparing the site in San José Chiapa before the end of the year. Construction work on the plant buildings should start in mid-2013.
The Q5 is expected to be replaced by a second generation model in 2014. The current model is built in Ingolstadt. The German plant began supplying kits to the Volkswagen Group’s Shendra plant in the Indian state of Maharashtra in 2010, around the same time as it began shipping kits to a then-new FAW Volkswagen plant in Changchun. These are each CKD assembly operations.
Audi is yet to state which will be the mother plant for the next Q5. Presumably Ingolstadt will again build the successor model, though this may only be until the Mexican operation starts up.
Author: Glenn Brooks
