Audi mulls its first auto plant in U.S.

Volkswagen AG's premium carmaker Audi, the underdog in the German luxury pack, is weighing whether to build vehicles in the United States as part of a plan to more than double its U.S. sales in the next decade.

"We're considering that," Audi CEO Rupert Stadler said Friday when asked if Audi might build a U.S. factory. With annual U.S. sales of around 90,000 vehicles, it makes little sense to produce cars and SUVs locally, he told The Detroit News. "But if you're dreaming about a 200,000 sales base, you have to make up your mind what you have to do."

Audi's German rivals BMW AG and Daimler AG's Mercedes-Benz carmaker have assembly plants in the South, and BMW is expanding its Spartanburg, S.C., operations, in part to limit the impact of unfavorable currency swings.

The euro's steep rise against the dollar has hurt the European automakers' competitiveness and profitability in the United States.

Audi's sister brand, Volkswagen, appears close to announcing plans to build an assembly plant in the United States, but Stadler said the two brands would not necessarily share a factory. Audi is conducting its own study, he said.

Stadler is in Detroit for the North American International Auto Show, where Audi will display its redesigned 2009 Audi A4 sedan, the TTS, a performance version of its sporty TT, and a diesel-powered supercar concept. Detroit News