Why has Audi chosen to produce its Q5 in Mexico
- Audi will establish its future North American assembly plant in Mexico, this plant will produce the next generation of the SUV, the Q5.
- This decision was made partly because of low labor costs, the availability of government grants from Mexico, but also free trade agreements between North America and Europe.
- Indeed, while imports into Europe of vehicles manufactured in the U.S. are taxed at 10%, those from Mexico suffer no tax on the entry into the European market.
- And if BMW and Mercedes built their plants in the USA in the 90s (who also produce SUVs) at the time the U.S. and Mexico were under the same level of tax for the entry of vehicles on the European market.
- Audi will have a plant in Mexico able to produce 150,000 vehicles per year, including 65,000 for Europe and 35,000 for the United States. The remaining 50,000 will be for the rest of the world.
- Please note that the Audi Q5 sold in China are and will be produced locally.
Data source: File #101 - Worldwide production detailed by models
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