Audi bets big on Mexico with all-new plant

Audi has expanded its worldwide production network with the opening of its first automobile plant on the North American continent in Mexico.

The German carmaker will produce the new generation of the Audi Q5 for the world market in San José Chiapa in Mexico’s federal state of Puebla. The plant has an annual production capacity of approximately 150,000 premium SUVs. By the end of the year, a total of 4,200 jobs will be created locally at Audi México.

The new Q5, which was revealed at the Paris Motor Show earlier this week, combines the sportiness of an Audi sedan with a versatile character and a highly variable interior. To date, the company has sold 1.6 million Q5s to its customers worldwide, making the model the most successful premium SUV in its segment. The Q5 is also still produced at locations in China and India for the local markets.

With the latest plant, Audi becomes the first premium automobile manufacturer with product facilities in Mexico. “The plant in Mexico is a milestone in the history of our company and an important step in our internationalisation. It is one of the most modern factories on the American continent. With this facility, we have established an important site for the export of our automobiles to customers all over the world,” said Prof. Rupert Stadler, Chairman of the Board of Management of Audi AG (pictured above). The country has 12 free-trade agreements with more than 50 countries and therefore offers ideal economic conditions. Mexico is a powerhouse for automobiles and automotive components.

Together with his Board of Management colleagues Prof. Dr. Hubert Waltl (Production and Logistics and also Chairman of the Board of Audi México), Prof. h.c. Thomas Sigi (Human Resources) and Dr. Bernd Martens (Procurement), as well as the Governor of the State of Puebla Rafael Moreno Valle, and Mayor of San José Chiapa Josué Martínez Santos, Stadler gave the signal for the official start of production of the new Audi Q5. “For us, this plant is more than a financial investment of over one billion euros. Above all, it is a commitment to the site and to the people who, together with us, have managed this great achievement,” continued Stadler.

“Our plant in Mexico is a prime example of the Audi Smart Factory. The facility is the first that we have put into operation completely virtually, that is, in a computer simulation,” stated Audi’s Board of Management Member for Production Waltl. We have optimised the entire process chain and put the plant into operation 30 percent faster than is usual.” That was a record in the automobile industry.

State-of-the-art tech

Audi says it has applied state-of-the-art technology in the factory planning. The plant first took shape in great detail in virtual space, where factory planners from various sites were able to work on the plant structure simultaneously. As a result, Audi was able to set up a complete car plant with a press shop, body shop, paint shop and assembly line on an area of 400 hectares (988acres) in the record time of just three-and-a-half years. Ultramodern plant equipment and highly efficient logistics allow an annual production volume of 150,000 Audi Q5 vehicles. Thanks to various water treatment methods and the application of new technologies in the paint shop, the plant will be free of wastewater. New equipment will significantly reduce water, gas and electricity consumption and facilitate resource-efficient production.

A supplier park has been established immediately adjacent to the park. Seven suppliers and logistics providers have started operations there in time for the start of production of the Audi Q5. The JIS park (just in sequence) guarantees short distances from the suppliers’ buildings to the assembly line and allows punctual delivery of components for the premium SUV. At the start of production, Audi is sourcing more than 70 percent of the parts from the NAFTA region and plans to increase this proportion of localisation over the long term. In total, more than 100 companies already supply parts for the Audi Q5 from sites in Mexico.

In line with its social responsibility, the company also supports the people in the region. Audi México has so far taken more than 3,300 local employees on board. Audi prepares its employees for their future tasks with tailored training courses at a new training center. Approximately 5,300 training courses have already been carried out. In addition, Audi has provided advance training at its sites in Germany to more than 750 Mexican employees, who were assisted by experienced mentors. Audi México offers diverse entry possibilities to young talented people, such as the system of dual training with approximately 80 apprenticeships each year, the internship program, the EMA scholarship program (Estudiantes Mexicanos en Alemania) and the new Programa de Especialistas, a qualifications program for career starters and job applicants with initial career experience.

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