Audi To Produce Cars In Chattanooga
Volkswagen already has a production plant in Chattanooga, Tennessee, and now Audi plans to follow suit. The German based company has expressed an interest in building manufacturing facilities in the US for some time, but the move would not have been practical until the auto financial bailout in 2008 occurred. Although it will be a few years before Audi is able to build a functioning production plant, it seems that Chattanooga is the best location. With a Volkswagen plant employing thousands of local, Audi will likely get huge tax incentives to raise another plant in the town.
Officials from the city of Chattanooga are reportedly working with a deal with Audi to sell the company thousands of acres of land necessary to build new plants and expand in the future. Because Audi can promise the city a huge number of jobs, lawmakers would virtually be able to guarantee their citizens employment opportunities for years. Audi stands to increase its profit margins by moving many of its production facilities to the US. In the year 2009 alone, Audi was able to improve its revenues by nearly 25%.
The maker of luxury cars has always been able to make more money importing its vehicles to the US, however, with the cost of materials, manpower and building a production facility, it remains to be seen if Audi can keep up with its own pace. The deal between Audi and the city of Chattanooga is expected to be finalized by sometime in the year 2012.