🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Audi to unveil electric vehicle manufacturing plans in Mexico -sources

Published 05/07/2023, 17:39
Updated 05/07/2023, 19:00
© Reuters. FILE PHOTO: A man walks past the logo of Audi during the opening of a new plant in San Jose Chiapa, in Puebla state, Mexico, September 30, 2016. REUTERS/Imelda Medina
VOWG_p
-

By Daina Beth Solomon and Dave Graham

MEXICO CITY (Reuters) -German carmaker Audi is this month scheduled to announce plans to begin producing electric vehicles in Mexico, according to three people with knowledge of the matter, joining other major carmakers in ramping up EV output in Mexico.

Asked to comment, a spokesman in Germany said the company had no such plans.

Audi, a unit of Volkswagen (ETR:VOWG_p), has since 2016 made the Audi Q5, a compact SUV, in the central Mexican state of Puebla, and later added a hybrid version.

An announcement on Audi's EV expansion plans is due to be made July 18 at its plant in San Jose Chiapa, Puebla, according to people familiar with the matter.

Top management from Germany is expected to attend the event surrounding what is likely to be a major investment, they said.

An Audi spokesman in Germany said no specific announcement was planned in Mexico.

"There is no announcement planned, and we cannot confirm any business trips or announcements," the spokesman said.

Audi's goal is for each of its global production sites, including Mexico, to make at least one EV by 2030, he added.

The state is also home to a Volkswagen auto plant, one of the biggest in Mexico, and numerous parts suppliers.

Mexican President Andres Manuel Lopez Obrador said last month more investments were soon expected in Puebla's auto industry. It was unclear how much Audi plans to invest.

Puebla's economy ministry did not respond to requests for comment. Volkswagen in Mexico declined to comment.

Both Audi and Volkswagen have outlined broad goals for boosting their EV production worldwide. Volkswagen last year said it would invest more than $7 billion in the next five years in North America, including for EV production.

In Mexico, Volkswagen last year announced a $763 million investment to upgrade the Puebla plant, including a new paint division running on electric energy.

© Reuters. FILE PHOTO: A man walks past the logo of Audi during the opening of a new plant in San Jose Chiapa, in Puebla state, Mexico, September 30, 2016. REUTERS/Imelda Medina

Last year, Mexico's then-Foreign Minister Marcelo Ebrard said during a tour of Audi's Puebla plant that he looked forward to more investment from the company as Mexico steps up production of more environmentally friendly cars.

Mexican officials and company executives discussed growth plans at the plant, as well as the transition underway at the whole group for producing "solely completely electric cars in the future," Audi said in a statement at the time.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.