Audi Spends $1.3 Billion On Mexican SUV Plant In Bid To Topple BMW

Among the dry, scrub-covered hills outside the Mexican town of San Jose Chiapa, a plot of land the size of 45 football fields will soon give Volkswagen AG a boost in its effort to become the world’s biggest automaker.

There, executives from VW’s Audi luxury unit tomorrow plan to break ground on a $1.3 billion factory with a capacity of some 150,000 cars a year. With its German facilities running flat-out, the plant will be instrumental in Audi’s push to topple Bayerische Motoren Werke AG (BMW) as the leading auto brand for wealthy drivers.

 

scenicbyway12 - 5/3/2013 12:28:04 PM

+2 Boost

"Audi Spends $1.3 Billion On Mexican SUV Plant In Bid To Topple BMW"

BMW just spent 990 million on a South Carolina plant expansion. Only 410 million more for a new plant seem like a deal.

CarCrazedinCali - 5/3/2013 1:21:49 PM

+1 Boost

except it's Mexico...

MorePower - 5/3/2013 5:26:49 PM

0 Boost

@ CarCrazedinCali

Most Americans don't know where their car is built, only where the badge originated.

@scenicbyway12

$400 million dollars in Mexico is, for a lack of a better word, a shit-ton of money. You also have to remember that Mexican workers make somewhere on the order of a $100/week. Even if Audi pulled a Walmart, their profit per vehicle, considering SUV's still earn a "shit-ton" of profit per vehicle sold + extremely low cost of labor + N.A.F.T.A., Audi is going to make a lot of money if their suv sales well.