Audi sees major benefits from gaining a U.S. plant

By Christiaan Hetzner

INGOLSTADT, Germany (Reuters) - Volkswagen's (VOWG.DE: Quote, Profile, Research) premium brand Audi would benefit "tremendously" from a U.S. production plant as the carmaker struggles to cope with the strong euro, Chief Executive Rupert Stadler said on Wednesday.

Stadler has repeatedly said he was looking into cooperation with parent Volkswagen to build vehicles in the United States, but his comments to Audi's annual meeting were the strongest signs yet that Audi needs a U.S. plant.

"There are no signs right now of this situation letting up," Stadler said, referring to headwinds like the sharp rise in the euro against the dollar which makes Audi cars more expensive.

The Audi CEO also cited other challenges facing the car maker, including the sharp rise in raw material prices.

"This is true in equal measure for raw steel, precious metals and aluminium," he told the meeting, where Porsche (PSHG_p.DE: Quote, Profile, Research) tightened its grip over VW by seeing its top two executives elected to the Audi supervisory board.

Audi reaffirmed its full-year targets for car sales to rise at least 3.7 percent to over 1 million units with revenue and earnings growing in line with volumes.

New sales and marketing boss Peter Schwarzenbauer said the carmaker sold 46 percent more pre-owned vehicles in the United States during the first three months, and had not suffered the same problem of falling used car prices that forced BMW (BMWG.DE: Quote, Profile, Research) to book a 236 million euro charge in the quarter.

"There is no problem at the moment for Audi to sell cars coming off lease. The used car business (in the U.S.) as opposed to the new car business is excellent," the former head of Porsche's North American operations told shareholders.