Audi Says It Chose Mexico For New Plant Because US Isn't Handling Debt Crisis

Volkswagen AG decided this year to build a $1.3 billion Audi plant in Mexico instead of the U.S. because the terms were better, the head of Volkswagen's U.S. operations said Monday.

"By choosing Mexico for the new plant, Audi can avoid a 10 percent tariff on cars shipped to a host of countries that have trade agreements with Mexico, but not the U.S.," Jonathan Browning, president of Volkswagen Group of America, said in a speech at the Brookings Institution here.

Mexico was the logical choice because 70 percent of the Audi plant's premium models would be exported, and the U.S. offers fewer advantages for export-oriented factories, he said.

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HughJass - 10/2/2012 10:28:10 AM

+1 Boost

I'm sure it has nothing to do with the Mexican peso dropping down to $0.08USD from about 20cents just a few years ago.

Maybe VAG is going to go into shipping drugs over the border too, a trunk full of dope with each new car.

Debt crisis vs drug cartel violence. Atleast the US gov't has some control over their own territory.

drell1emc - 10/2/2012 10:45:11 AM

+1 Boost

HughJass you beat me to it, I second for thoughts. Pay more to US works or pay the Drug lords to keep you Company and Workers safe. FREEDOM AIN"T FREE! semper FI

knowitall1985 - 10/2/2012 11:59:57 AM

+3 Boost

No problem they can sell their overpriced vw's in mexico...

vdiv - 10/2/2012 3:28:09 PM

0 Boost

Is it time to shaft NAFTA an levy tariffs on imports? That may solve that debt VAG is so worried about.

HughJass - 10/3/2012 10:42:27 AM

+2 Boost

Mexico, Pakistan and N.Korea were the 3 gov'ts deemed most vulnerable to collapse. Great choice VAG. When is the Lahore plant opening?