Audi confirms production in Brazil in 2015

September 18, 2013: German luxury carmaker Audi AG is creating additional capacity for the next stage of the company’s growth. As of 2015, the Ingolstadt-based manufacturer will produce cars in São José dos Pinhais, Brazil. The new Q3 SUV and the new A3 saloon are to drive off the assembly line in the south of the world’s sixth-largest economy.

In late 2013, Audi will further expand its worldwide production network when the second Audi plant in China starts production in Foshan. The company plans to produce cars also in Mexico as of 2016. Together with the new production in Brazil, the carmaker intends to significantly increase its deliveries to customers also on the South American continent.

Rupert Stadler, chairman of the Board of Management of Audi AG, and Dr Bernd Martens, Member of the Board of Management for Procurement, met members of the Brazilian government yesterday on the occasion of announcing the new Audi production site. At that meeting, Stadler named the main reason for the decision: “By producing in Brazil, we will create the basis for further growth in the region.” Stadler also announced that the sales department would more than double the size of the dealer network by the end of the decade: “Also in Brazil, our goal is to lead the premium segment.”

The company says it is already starting to make preparations to ensure that production begins smoothly in 2015. With production in Brazil, local sourcing should also have a positive impact on the carmaker’s business, said Audi’s Board of Management Member for Procurement, Dr. Bernd Martens: “For the production of the A3 saloon, we want to purchase a lot of components locally; we therefore plan to establish close relationships with Brazilian suppliers at an early stage.

By 2015, the company intends to invest around € 150 Mio. to prepare for production at the site in São José dos Pinhais in the federal state of Paraná. As a first step, the new A3 will roll out in 2015 followeby the Q3 a few months later.

As of 2020, Audi plans to deliver two million cars to its customers worldwide each year. To achieve that target, the company is making large investments at its large production sites in Germany and Hungary. At the same time, Audi is significantly expanding its production network outside Europe. “With today’s decision in favor of Brazil, we are ideally positioned in all BRIC countries,” summarised Audi CEO Stadler. In late 2013, the company will open its second plant in China in Foshan. And by 2016, Audi will also put a new automobile plant into operation in Mexico. With the new plants in Brazil and Mexico, Audi is consistently preparing for further growth worldwide and in particular on the South American continent.

Photograph: Prof. Rupert Stadler, chairman of the Board of Management of Audi AG, on the IAA Frankfurt Motorshow 2013.

Photograph (L-R): Jörg Hoffmann, head of Audi Brasil, Dr. Bernd Martens, member of the Board of Management for Procurement, Rupert Stadler, chairman of the Board of Management, Brazilian State President Dilma Rousseff, State secretary Gleisi Hoffmann, Minister of Trade and International Development Fernando Pimentel.