Thursday, April 19, 2012

Audi to build production plant in Mexico, maintaining its drive for internationalization

Supervisory Board welcomes plans for Audi plant in Mexico
Rupert Stadler, Chairman of the Board of Management of AUDI AG:
“Excellent basis for sustainable growth”
General Works Council Chairman Peter Mosch: “Stepping up production
capabilities guarantees capacity utilization of main plants”
Exact Location to be selected later this year – production to begin in 2016

Ingolstadt, April 19, 2012 – The decision has been made: AUDI AG Board of
Management and Supervisory Board of AUDI AG approved plans to build a
North American plant in Mexico. The exact location for the new plant, which will
manufacture an SUV model starting in 2016, will be chosen by AUDI AG later this

“As an established carmaking location, Mexico offers an excellent economic basis
for Audi production operations,” declared Rupert Stadler, Chairman of the Board of
Management of AUDI AG. Mexico is one of the world’s top ten automotive locations
and offers a blend of tradition and experience. The group parent Volkswagen
already has an automotive plant in Puebla and an engine plant in Silao. “Good
infrastructure, competitive cost structures and existing free trade agreements played
a significant role in the choice of Mexico,” emphasized Stadler. “This trailblazing
move will help us safeguard our position on the world market. Our German
locations, too, stand to benefit from it.”

“The new plant will become a fully fledged member of the Audi production network
and will implement the very latest standards in terms of resource efficiency and
production processes,” stated Frank Dreves, Member of the Board of Management
of AUDI AG for Production. “Audi is all about premium quality no matter what the
location.” Following on from the policy decision, the next step will be to conduct


a detailed examination of various locations in Mexico. AUDI AG aims to choose
the exact location within the course of the year. “The factors that we will take into
account include not just the specifics of the real estate and its logistical links,”
emphasized Thomas Sigi, Member of the Board of Management of AUDI AG
for Human Resources. He also cited quality of life as a decisive criterion. “It is
important for us to be able to find well-qualified employees there,” continued Sigi,
referring to the need for an effective infrastructure of schools and universities.

Peter Mosch, Chairman of the General Works Council of AUDI AG,
added: “Stepping up production capacity safeguards our growth and at the same
time guarantees the capacity utilization of the main plants, which we envisage
will increasingly take on the role of lead plants for our technologies. That means
developing modern production methods and strategies, using new materials
and joining technologies, and addressing the field of electric mobility. For the
employees, this offers attractive, secure jobs and additional career prospects. An
employment guarantee will also be agreed.”

“It will be possible to supply customers worldwide with cars built in Mexico to
Audi’s renowned standard of quality,” said Peter Schwarzenbauer, Member of
the Board of Management of AUDI AG for Marketing and Sales, emphasizing the
importance of an international presence for international success. Schwarzenbauer
added: “In launching production operations in Mexico, Audi will enhance its own
competitiveness and move significantly closer to its sales target of two million units
per year by 2020.”

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