Thursday, March 13, 2008

Audi North American Plant

Audi to add a North American assembly facility to support the brand's ambitious goal of doubling its U.S. sales to 180,000 by 2015, company Chairman Rupert Stadler said Tuesday.

The brand will also add many new models as it works to boost worldwide annual sales from 964,151 in 2007 to 1.5 million in 2015.

Stadler also said in a conference call that Audi plans U.S. sales of a diesel-powered version of its new A4 sedan at some point. Diesels account for 60% of Audi's European sales. It will offer its first diesel in the United States -- a Q7 with a 240-horsepower, 3.0-liter, V6 turbodiesel -- early next year.

Audi has not definitely decided to build in America, Stadler said. If it does, it could share a facility with Volkswagen or build a plant of its own. Both brands are owned by Volkswagen AG. VW is expected to announce this year that it will build an assembly plant in the southeastern United States.

Audi will introduce 40 new vehicles around the world, including many in segments the automaker does not currently compete in, by 2015.

This year will see the launch of the Q5, an SUV smaller than the Q7, a convertible version of its A3 compact and sales of the A4 sedan and Avant. The A4 goes on sale in the United States in September as a 2009 model.

In 2010, Audi will add a subcompact car called the A1, Stadler said.

"Factors influencing the decision to build vehicles in North America include the weak U.S. dollar -- which makes the vehicles Audi assembles in Europe more expensive in the United States -- what vehicles to produce, whether to use the plant for exports around the world and the presence of suppliers Audi trusts for its luxury vehicles"

"For our long-term growth strategy, we need additional capacity," Stadler said.

Audi will aggressively promote diesel engines, which are more fuel efficient than gasoline power plants, as part of its goal to reduce its vehicles' fuel consumption 20% by 2012.

Stadler said he expects diesels to account for 10% to 15% of Audi's U.S. sales in 2015, and to hold about the same share of the total market for light-duty pickups, SUVs and cars. That would be a major increase from current U.S. diesel use, but other automakers, including General Motors Corp. and Ford Motor Co., also plan to offer more diesels in the United States.

Audi expects to sell 100,000 vehicles in the United States this year, up from 2007's record of 93,500. The company is increasing the number of dealerships that sell only its cars in the United States to support its growth targets, Audi USA chief Johann de Nysschen said. Audi expects to have 120 exclusive dealerships in the United States by the end of this year and 170 within four years. The company has 116 Audi-only dealers in the United States.

No comments: