Because of a weak dollar and ambitious sales goals, Audi and VW need to build different cars on common platforms in one U.S. plantAudi (NSUG) plans to sell 200,000 cars and sport-utility vehicles a year in the U.S., and is getting more serious about manufacturing vehicles there. But to do so, it and parent company Volkswagen (VOWG) must work together.
Audi Chief Executive Officer Rupert Stadler said at Audi's annual meeting on May 7 that the company would benefit "tremendously" from a U.S. production plant. In an interview with BusinessWeek (BusinessWeek.com, 1/16/08) last January, Stadler said, "It's getting harder to see a way for us to reach our goals in the U.S. without our own facility, but it is a difficult problem to solve."
As it has been minor player in the North American auto market for as much as a decade, Audi's desire for U.S. manufacturing is understandable. VW and Audi profits are being hammered by a weakening U.S. dollar. Both divisions of VW are intent on increasing their business in the U.S. VW has an audacious goal of selling 800,000 vehicles in North America by 2018. Audi sold 93,506 vehicles last year. Its problem is that even if it built all of its vehicles in the U.S. (which is not feasible) it does not have enough sales volume to justify a plant of its own.
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