Audi have recently confirmed plans to open a new plant in Mexico. They are clearly pushing to edge closer to BMW, the world’s leading luxury car manufacturer.

Which model?

However it must be noted that the new factory will not be built and will produce any vehicles until 2016. It has been confirmed that a luxury sports utility vehicle will be built at the factory. It is not yet known whether that will be the Q3, Q5 or Q7 as of yet.

The prominence of Mexico

Experts believe the new development will cost around $2 billion. This has not been confirmed by Audi as of yet. The fact that production will commence in Mexico shows the progress that the country is clearly making.  A luxurious brand such as Audi investing in the country would bring great prosperity and hope to the countries automotive industry. Last year Mexico finished 8th in the world when ranking total vehicles produced in a single country. In total Mexico managed to produce 2.6 million vehicles which is a wonderful achievement.

It makes great business sense for more car producers to invest in Mexico. Exports are made a whole lot easier thanks to agreements with the United States, Canada, the South American region and the European Union.

Rupert Stadler, the Chairman of the Board of Management from Audi commented on the advantages of producing in Mexico saying that “(Mexico) offers an excellent economic basis for Audi production operations. Good infrastructure, competitive cost structures and existing free trade agreements played a significant role in the choice of Mexico.”

Catching up with BMW and Mercedes-Benz

It is hoped that Audi can finally rival the likes of Mercedes-Benz and BMW in the United States. Currently the battle is primarily between the latter. Although Audi are the fastest growing car manufacturer in the company, they really need a base for production nearby to heavily compete. This recent announcement could be the answer. It is in this particular area where BMW and Mercedes-Benz currently hold the advantage at present. BMW have a factory located in Spartanburg, South Carolina where X-model SUV’s are made. Mercedes-Benz build the M-Class, GL-Class and the R-Class in Tuscaloosa, Alabama. The ever famous C-Class is also expected to be built over in the United States in from the year 2014.

Audi’s amazing growth has continued this year, not only in the United States, but across all other important car markets around the world.