Audi, VW Considering Options for U.S. Plant
May 07, 2008

Audi Chief Executive Rupert Stadler confirmed that Audi is in talks with its parent Volkswagen AG to build an assembly plant in North America.

The dollar, which has traded at record lows against the euro throughout the past year, has made it costly for German automakers like Audi and Volkswagen to import cars to the U.S. Stadler told shareholders at the company’s annual meeting that he sees no let up in the currency situation.

Plus Audi plans to increase its global sales to more than 1 million vehicles this year, but is not growing as fast as it wants to in the U.S. “The growth that we have seen throughout the world has not translated into growth on the U.S. market to the extent that we would like,” Stadler told shareholders at Audi’s annual meeting. “We stand to benefit tremendously from having our own local production.''

Stadler told shareholders Audi and Volkswagen are “sounding out options” for a North American plant. He said vehicle production would start at such a plant in 2010 at the earliest.

Stadler reiterated Audi’s target to sell more than one million cars worldwide this year, for the 13th consecutive annual record sales. Audi’s growth will be propelled by this year’s global launch of the revised best-selling A4, unveiled in September at the Frankfurt motor show.

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