Audi’s plant in San Jose Chiapa, Mexico, is set to open on 30 September 2016, according to El Economista. The report notes that Audi will have invested USD1.30 billion in the plant, and that 3,200 employees have been working on pre-production of the Q5 since late 2015. Employment is reported to be planned to increase to 4,200 by end 2016, and to 10,000 by 2026. The plant’s capacity is reported to be 150,000 units; it will be the primary global source for the new-generation Q5.
Significance: Audi selected Mexico for its new plant in 2012, and has been training employees since October 2014. The company also has a target to have 65% of the components used in the facility to be sourced in North America. As early as 2013, reports began indicating that Audi was considering doubling the plant’s capacity, and in 2015 reports indicated that a second vehicle could be added. IHS Automotive forecasts that Audi will add the A4 sedan to this plant, though not until about 2023. For the first several years, we forecast output of the Q5 in the range of 130,000 units per annum (upa) through 2019, dipping in the next decade. Audi currently builds the Q5 in Germany and China; production in China will continue, to supply that market in particular. The Mexico facility is planned to provide sufficient Q5 demand for the rest of the world. The Q5 uses Audi’s MLB B/C platform, which is the primary platform for Audi’s D-segment vehicles going forward. The platform will be used for Audi and Porsche products; IHS forecasts the platform will see global production for all models exceed 1.1 million upa through 2023, with North America the smallest contributor to that figure.
