Volkswagen AG decided this year to build a $1.
3 billion Audi plant in Mexico instead of the U.S. because the terms were better, the head of Volkswagen's U.S. operations said Monday."By choosing Mexico for the new plant, Audi can avoid a 10 percent tariff on cars shipped to a host of countries that have trade agreements with Mexico, but not the U.S.," Jonathan Browning, president of Volkswagen Group of America, said in a speech at the Brookings Institution here.
Mexico was the logical choice because 70 percent of the Audi plant's premium models would be exported, and the U.S. offers fewer advantages for export-oriented factories, he said.
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