Volkswagen, Audi’s owners have said they will select a site location for a brand new plant based in the Americas region by this summer.

Chattanooga, Tennessee the favourite

The city of Chattanooga, Tennessee, is the favourite according to many automotive reports. Mexico also remains as a front runner.

There could be space at the current Chattanooga plant which Volkswagen currently holds. From the 1,340 acres where the plant is located at the moment, Volkswagen only utilise a portion of that space. Audi’s new factory could be built here according to rumours.

Volkswagen are said to have first proposal on a 1000 acre piece of land located at the Enterprise South Industrial plant.

Audi need a plant in the region

Audi do not yet have a plant based in North America. They could certainly do with one as the luxury car market in America is bigger than anywhere else in the world, including that of China. Audi are the fastest growing luxury car manufacturer not just in America, but in the world. Their sales figures did not quite match that of Mercedes-Benz and BMW but the company showed more growth than the German counterparts.

With a plant in America, Audi will be able to compete with the top two. With labour, production and parts all being local within the country, Audi vehicles on the auto market will prove to be immensely cheaper.

2015 is the target

The company are aiming for the factory to be up and running by the year 2015. There have been no official names of models that are to be produced at the factory. Rumours claim that the Audi Q5 or Q7 could be produced here following high sales.

Is Mexico a better option?

Some believe that a better option would be to build a plant in Mexico, as mentioned earlier. It could prove to be cheaper. It may also provide a more effective means of gaining stronger sales in the Latin America region. Some are sceptical of this idea claiming the Mexican market is set to see a decrease is economy.

Chattanooga want Audi in town

Chattanooga are desperate to see the Audi plant built in their city and have kept close relations with Volkswagen in order to see their wish granted.

Volkswagen has high ambitions in America. They know that if they are to become the number one auto manufacturer in the region then they will have to start performing better in America. Their aim to sell 1 million vehicles annually across the country by 2018.