Blog: Dave LeggettAudi and Brazil

Dave Leggett | 16 May 2003

Our man in Rio, Rogério Louro, reports that Audi has decided to stop making the A3 in Brazil. It's an interesting re-balance going on for VW down there that could see an end to all Audi production in Brazil from 2005. Maybe it makes more sense to concentrate on making VWs in Brazil, given the apparently low sales numbers for the A3. Perhaps the very idea of a prestige-badged small premium hatch just isn't quite right for a market at Brazil's level of development. Not enough people prepared to pay the badge premium on a car of that size. The person with A3 affordability is perhaps looking for more metal for the money. And if the A3-Golf price differential was narrowed too far, profitability may have been hit.

I'd like to see production volume plans for Project 249 though - it would be easier then to see how capacity utilisation for VW is panning out. For the industry as a whole, there's still substantial excess production capacity in South America.


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