Audi prefers to build its own plant in Mexico

Reuters - German carmaker Audi prefers to build its own manufacturing plant in Mexico rather than use the U.S. factory of parent Volkswagen (VOWG_p.DE), German magazine manager said, citing VW sources.

Audi Chief Executive Rupert Stadler also wants a new factory in Mexico to produce the sport utility vehicle Q5, Manager Magazin said on Wednesday.

It said it was still unclear if Stadler would have his way in the face of opposition from some of Volkswagen's top managers, who wanted Audi to make use of the new VW plant in Chattanooga, Tennessee.

A spokesman for Audi declined comment on the report but said a decision on its production in North America would be made before 2015.

No one from Volkswagen was immediately available for comment.

Unlike its rivals BMW and Daimler's (DAIGn.DE) Mercedes-Benz, Audi does not have its own factory in the United States.

Audi has long been aspiring to have its own production facility in North America to penetrate the U.S. market better.

Stadler said in an interview in June a decision on the issue would be made in the next 12 months.

Manager said a decision could already be made in October.