Monday, November 28, 2011

Audi Expansion Probably Include U.S. Assembly Plant

German luxury Audi is growing by leaps and bounds. In 2010, the brand sold more than 100,000 units in the U.S. market profitable, but the competition, his best year. Audi still trails its German rivals BMW and Mercedes, selling less than half of what they sell in the United States, but the brand is to close that gap.

Audi has much to celebrate in addition to record sales. In the North American Auto Show Detroit 2011, Audi A6 sedan 2012 won "Best Production of vehicles," one of several prizes will be awarded certain that this new style sedan. The 2012 model goes on sale in the spring of 2011.

The booming demand

The Audi product demand has been a boon for parents of Volkswagen AG, but presents a problem for the automaker. That problem is the U.S. abilityassembly which is currently zero. Past operated a Volkswagen assembly plant in Pennsylvania, closing in the 1990s as the problems of demand and pursued as to the operation. In the spring of 2011, a completely new assembly plant will go online in Chattanooga, Tennessee, but only build the Volkswagen Passat, a midsize sedan. There is no production capacity of the United States means that Audi has to import 100 percent of their vehicles, unlike BMW and Mercedes plants operating in South Carolina and Alabama, respectively.

Audi leads to the production in the United States will have to deal with the vagaries of exchange rates between the euro and the dollar. Automakers that build in the United States have some advantages for those who do not, avoiding currency fluctuations for some models at the same time building good will with the Americans who prefer to buy domestic models.

Notice of delay

Audi had hoped to announce a U.S. plant, but that decision may be several years away from happening, with several more years added on top of that, Audi shopping for land, negotiates with the United competiting tax exemptions, breaks ground, hire staff and begin the installation. In fact, Audi, Rupert Stadler, CEO says Automotive News in January 2011 that the decision would be made within four years, which could mean that a plant to be operational in 2020.

At the same time, Audi continues to enjoy demand and finding a way to make the cars and the price competitive with other luxury brands such as Infiniti, Cadillac, Lexus, Volvo and Acura. Whatever the decision is close to Audi, the delay is not possible to thwart the demand. European luxury car fans know that there is a choice, as well as Mercedes and BMW, and that option is apparently worth more than 100,000 buyers of new cars.

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