We Lose: Audi To Build North American Plant In Mexico

Audi has long been known to be looking for a North American location for a new auto plant.  While Chattanooga was the most rumored site for a potential U.S. location, Georgia was assumed to be in the mix.  Neither will prevail.

Audi has yet to announce a specific location for the Mexican plant, but the automaker says the factory will be up and running by 2016.  The plant will “manufacture an SUV model”, which is widely thought to be the Q5 compact utility vehicle.

Audi parent  Volkswagen, which already operates a production facility in Puebla, Mexico, says it chose Mexico over the United States for “economic” reasons.

“Good infrastructure, competitive cost structures and existing free trade agreements played a significant role in the choice of Mexico,” said Rupert Stadler, Chairman of the Board of Management of AUDI AG. “This trailblazing move will help us safeguard our position on the world market. Our German locations, too, stand to benefit from it.”

So, if it’s any consolation, all those people that don’t come to Georgia anymore to pick Vidalia onions or gather pine straw will have a reason to stay home and work in Mexico, just like those that voted for HB87 wanted.




  1. saltycracker says:


    Guess you think instead of offering subsidies we should have offered Audi to hire illegals sans payroll taxes ?

    • Rick Day says:

      could we get the Lege to focus on infrastructure issues, instead of what’s up inside a woman’s parts?

      I can just see the Title Page for the Audi GA proposal: WE PROTECT ZYGOTE’S RIGHTS

      Always best to lead with your strongest point. Besides, Mexico has legalized possession of small amounts of soft drugs. No piss test overhead!

      We will never win this race with these kind of shackles. Someone better figure out some job thing that we can do here in JesusLand™ because in 20 years there ain’t going to be any manufacturing left in GA.

      Just wait until the last carpet plant closes, and Tyson moves to Mexico. But ABORTION!

  2. Harry says:

    The real value add in automotive comes from the buyer’s perception of quality. Somehow I don’t think “Hecho en Mexico” will help with Audi’s image. “Wir schicken Sie kein Audi” used to be a pejorative in Germany.

    • Calypso says:


      I tend to agree with you, Harry. But according to Google translate, “Wir schicken Sie kein Audi” means “We do not submit a Audi.” Help me out here.

      I always heard the VWs built in Mexico would break if you poked ’em with a stick.

      • Harry says:

        “We’re not sending you an Audi” – in other words, we’re not sending you a bad quality person or thing.

        • Calypso says:

          Gotcha. I had a nice Audi in the mid 1980’s. I loved the car, but it was tainted by the later-to-be-found-BS ‘unintended acceleration’ issue. Value dropped like a rock.

      • saltycracker says:

        I’ve dealt with the “sacrifice quality” story between different UAW locals with pay scale variances and with U.S. vs Mexican or other plants for years. Its territorial or managerial BS. Quality is not the issue plus the plants are state of the art. There are other issues to deal with though.

        • saltycracker says:

          P.S. Economic justification includes labor and govt restrictions/taxes while another big factor is logistics, getting parts to the plant ( or plants – VW?) and shipping cars out.

  3. Well that sucks… I was lobbying hard on the corporate side to get this done in Georgia. The q5 shares the same platform as the Jetta/golf/beetle, and is a well dressed VW tiguan. My opinion is GA did not try enough politically, as echoed above. I guess if you don’t own a pro football team, you get no love in GA. An Audi plant makes perfect sense.

  4. Harry says:

    It was definitely a political decision by the VW supervisory board, and also likely by the lack of givebacks being offered by Georgia/Tennessee. According to a German source who is very well informed about all things automotive, the union members who sit on the board feel more sympathetic with Mexican labor law than with US right to work legislation. Certainly Mexican assembly plant pay scales are somewhat more competitive, but that is offset by transportation costs and macro risk.

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