SAN JOSE CHIAPA, Mexico—Construction is underway on a new $1.18-billion Audi plant in central Mexico.
According to the German automaker, the new facility, being built in San José Chiapa, approximately 160 kilometres east of Mexico City, will be home to the popular Q5 SUV.
The plant will be the first auto facility owned by Audi in North America, and will house body, paint and press shops and an assembly line.
“By setting up a new car plant in North America, we are establishing a presence on another continent that is very important to us,” Audi AG chairman Rupert Stadler said in a statement.
“In this way, we are strengthening our international competitiveness and consistently pursuing the Audi growth strategy.”
Built on an area of 400 hectares—as big as 400 soccer fields—at an altitude of 2,400 metres above sea level, the plant will have an annual capacity of 150,000 units, according to Audi.
The facility is expected to open in mid-2016.