BERLIN—German automaker Audi says it will build a new plant in San Jose Chiapa in central Mexico and expects to start construction there in mid-2013.
Audi said it settled on San Jose Chiapa, in Puebla state, after looking at more than a dozen locations.
It said the site “is an ideal base from which to supply international markets from Mexico.”
Audi, a unit of Volkswagen AG, plans to build the successor to its current Q5 SUV in Mexico and aims to produce 150,000 vehicles per year.
Production is expected to start in 2016.
The company said in April that it planned a new plant in Mexico and spent the past few months selecting the location.