INGOLSTADT, GERMANY – Audi AG’s Board of Management and Supervisory Board have approved plans to build a new manufacturing plant in Mexico. The plant will manufacture an SUV model beginning in 2016 and the company stated it will choose the location of the plant later this year.

The automaker said its parent company Volkswagen already has an automotive plant in Puebla and an engine plant in Silao, and Rupert Stadler, Chairman of the Board of Management of AUDI AG, said “Good infrastructure, competitive cost structures and existing free trade agreements,” were reasons for choosing that country for the automaker’s next plant.