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Audi Delays Q3 Compact SUV U.S. Production Plans

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Audi Delays Q3 Compact SUV U.S. Production Plans
Audi Q3 Front View

Audi Delays Q3 Compact SUV U.S. Production Plans

April 23, 2009

By Rory Jurnecka

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Audi has announced its decision to produce the upcoming Q3 crossover in Spain, while postponing plans to begin producing vehicles in the U.S. The German automaker says it will invest around $387 million in a Seat plant in Martorell, Spain, the chosen Q3 production site. Spanish Prime Minister Jose Luis Rodriguez Zapatero said the decision will also keep around 7500 people employed in Spain, a country that has been hit particularly hard by the economic recession.

According to a Reuters' union source, Seat workers at the Martorell plant took a two-year freeze on pay to obtain the Q3 contract. Audi said that up to 80,000 Q3s could be built annually at the plant. The Q3 will be a compact crossover based on the Audi A1's MQB architecture, but with a stretched wheelbase and overall length. The vehicle should look similar to the Cross Coupe Quattro concept (pictured) that made its debut back in 2007 at the Shanghai motor show.

Expect to find either a 2.0L TFSI gasoline engine or a 2.0L turbodiesel under the hood, sending power to all four wheels via Audi's quattro system and S tronic dual-clutch transmission. Audi has previously stated that bringing the Q3's platform-mate, the A1, to the U.S. is currently out of the question due to a perceived limited market for a comparatively expensive compact car.

Unlike German rivals Mercedes-Benz and BMW, Audi has decided that building SUV models in the U.S. is not necessary at present and is postponing its decision to do so. Regarding building vehicles at a U.S. site in the future, Audi told Reuters, "Audi is in a good position. There is currently no urgent need to select additional sites." It was previously speculated that Volkswagen's coming Tennessee plant could provide production advantages for the premium Audi brand as well.

Source: Reuters

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