Audi Spends More Than $1 Billion To Build EVs In Mexico

Luxury automaker Audi will invest €1 billion ($1.08 billion) in new electric vehicle projects in Puebla, Mexico, reports Reuters. State governor Sergio Salomon, who made the announcement alongside Audi Mexico president Tarek Mashour, confirmed the plans earlier this week.

The investment will allow the automaker to manufacture fully electric cars at its factory in San José Chiapa. The facility, which employs around 5,000 workers, currently builds the Audi Q5 PHEV. The automaker has not said which model it will make at the facility, but Mashour said Audi aims to transform it into a “hub” for electric cars.

Audi Still Betting Big On EVs

Audi Mexico has started revamping the factory in preparation, adding the necessary infrastructure required to build future e-tron vehicles. Whereas other automakers have backtracked on their electrification plans – including rival Mercedes-Benz – Audi remains committed to the electric future. In March, CEO Gernot Doellner said the Ingolstadt-based automaker will be able to pivot if need be, and will offer a healthy mix of EVs, PHEVs, and combustion-engined cars for another decade.

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In a statement, Audi Mexico said that it is moving towards the future. “The Audi plant in the state of Puebla is ready to start its electromobility project and continue contributing its full potential to e-tron technology.” Governor Salomon described the investment as “historic,” noting that it will help Puebla become a hub for electromobility.

What Will Audi Build In Mexico?

Currently, Audi produces several electric vehicles, namely the Q4 e-tron, the all-new Q6 e-tron, Q8 e-tron, and the e-tron GT. It’s unlikely that Audi will move production of these vehicles to Mexico; it’s more likely that the facility it being retooled to accommodate an entirely new vehicle. Audi has a slew of EVs on the way, including a more compact body style that will slot beneath the Q4. It is rumored to adopt the Q2 name and will arrive in 2027.

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As Audi wants to keep costs down, it would make sense for the company to build the car in Mexico. Of course, this is yet to be confirmed, and Audi could be preparing to build any of its electric vehicles at the facility. A large electric SUV is also a possibility, as the United States would be one of the main markets. If it is built in Mexico, it may be eligible for a tax credit, depending on pricing. Of course, this is speculation, and we will have to wait for Audi to share more information. CarBuzz has reached out to Audi for comment and will update this article once we receive a reply.

Source:
Reuters