No Mexican plant for Audi

examiner.com (Detroit) - Audi is denying reports originally claiming that they would be opening a North American manufacturing plant in Mexico.

Brad Stertz, the Audi spokesperson, told reporters, "it's still going to come down to discussion on the board level," when asked about the final decision on the factory's location and which models will be produced.

The original reports of Audi opening a plant in Mexico came from the German magazine, Der Spiegel, which stated that Audi won backing from Volkswagen to build the new plant in Mexico for the production and distribution of the Audi Q5 Sport-Utility vehicle. The magazine, however, cited no sources.

Audi officials have continued to say that the final decision on where to place the plant will be made by summer.

Volkwagen originally wanted to expand its factory in Chattanooga, Tenn., to make room for the creation of Audi vehicles. And, VW currently has plants in Puebla, Mexico and will open another plant in Silao, Mexico in 2013.

The decision on whether to open the production plant in Mexico or the U.S. has benefits for both sides.

Mexico is exempt from import duties, which would allow Audi to avoid a 10 percent tax on cars built in the U.S. and shipped to Europe, however, the "Made in the U.S.A" label is a very important statement for Audi, and could lead to increased U.S. sales.