MEXICO CITY, Sept 5 Audi AG plans to
invest around $1.3 billion in the first stage of its new plant
in Mexico, Puebla state Governor Rafael Moreno Valle said on
Volkswagen AG's Audi said on Tuesday it had
picked San Jose Chiapa, in Puebla, as the site for its new plant
for sport utility vehicles in Mexico.
Audi's first factory in the Americas aims to take advantage
of low labor costs and an exemption from import duties in some
regions to help it reach its target of selling 1 million cars in
the United States by 2018.
The construction of the new Audi plant, which will create
some 20,000 new jobs in Puebla, will start next year and the
facility is expected to start production in 2016, with an
estimated first output of 150,000 vehicles.
The new Puebla plant will strengthen VW's operations in the
central Mexican state, where Europe's biggest carmaker already
makes the Jetta compact sedan, its best-selling U.S. model, and
the new Beetle.