Audi is still discussing the feasibility and location of a possible North America plant, but if they go it seems like they are looking more into Mexico rather than extending the VW factory in Chattanooga.
Audi wants to get in on the cheaper construction and shipping costs available here, but it doesn’t want to borrow VW’s extra capacity. Instead, it will build its own new plant in Mexico.
The new Mexican plant will build the Q5, according to a Manager Magazin interview with CEO Rupert Stadler. The Q5 is Audi’s contender to the mid-size luxury crossover contest, facing off against the likes of the BMW X3, Mercedes-Benz GLK, Cadillac SRX, and Lexus RX. A hybrid version of the Q5 is also in the works, due to arive in the U.S. later this year.