Supply Chain World - Fall 2017 - 46

manufacturing & energy audi mexico
www.audi.com / HQ: San Jose Chiapa, Puebla, Mexico / Employees: More than 5,000 local employees / Specialty: Manufacturing of Audi Q5 luxury SUV /
Peter Koltai, director of production control and logistics: "This is a factory that produces almost for the entire world."

Leading the Way
To fuel its global growth, Audi
found a location in Mexico that
was conducive to shipping
throughout the world and could
reduce its tariff costs.

Audi becomes the first luxury carmaker to expand its operations
into Mexico. By Chris Kelsch

Like any carmaker, luxury or
otherwise, Audi has seen great
demand around the globe for vehicles in the crossover and SUV segment. Indeed, the carmaker's Q5
luxury SUV has been a key driver of
its sales and marketshare growth
in recent years, and remains one
of Audi's most successful models.
With the all-new 2018 model in
showrooms Audi has continued as
one of the dominant players in the
German luxury car space.
To meet demand while increasing profitability, Audi for the first
time in its history ventured outside
46

Supply Chain World FALL 2017

of Europe in looking for a location
to build the Q5. The company
decided to build a new plant in San
Jose Chiapa, about a three-hour
drive east of Mexico City.
The significance of both the Q5
and Audi's first venture into North
America isn't lost on Peter Koltai,
director of production control and
logistics for Audi's Mexico operations. "This is a factory that produces for almost the entire world,"
Koltai states proudly. "The Audi Q5
will write a global success story."
To fuel its global growth,
Audi needed a location that was

not only conducive to shipping
throughout the world, but one
that could reduce its tariff costs
and expand its global footprint.
The country of Mexico supplies
both. It has 12 free trade agreements with almost 50 countries,
and its labor costs are lower than
other countries as well.
"With its qualified workforce,
good infrastructure and strong
trade agreements, we know in the
next few years Mexico can become
the fifth-largest carmaker in the
world," Koltai adds. "Mexico is a
very important place."



Table of Contents for the Digital Edition of Supply Chain World - Fall 2017

Contents
Supply Chain World - Fall 2017 - Cover1
Supply Chain World - Fall 2017 - Cover2
Supply Chain World - Fall 2017 - 1
Supply Chain World - Fall 2017 - Contents
Supply Chain World - Fall 2017 - 3
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