German carmaker Audi has started construction of the new EUR900m sport utility vehicle (SUV) manufacturing plant in San José Chiapa, Mexico.
Claimed to be the Audi's first own car manufacturing plant on the American continent, the new facility will have a capacity of manufacturing 150,000 units per year upon its commencement of operations in 2016.
The new plant, which also incorporates body shop, paint shop, assembly line and a new press shop, will produce Audi's Q5 SUV models for the US and other global markets.
Audi Board of Management chairman Rupert Stadler said the production of company's Q5 model at Mexican plant will enhance global growth and allows supplying the SUV to the world market.
"By setting up a new car plant in North America, we are establishing a presence on another continent that is very important to us," Stadler said
Additionally, Audi is planning to produce three new SUV models at the Mexican facility by 2020.
