BRAZIL - Audi confirms that production has begun at the new Curitiba plant with the A3 Saloon, then the Q3 later.

• Board of Management Member for Procurement Dr. Bernd Martens: “We will utilize the potential of high added value in Brazil”
• First Audi worldwide with flex-fuel engine
• Audi Q3 soon to also be produced in Curitiba

AUDI AG has started production in Curitiba in the Brazilian federal state of Parana. The latest of thirteen sites in the Audi production network is the first in South America.

“We see great potential in the Brazilian market. Our goal there is to maintain our leading position in the premium segment over the long term,” stated Dr. Bernd Martens, Board of Management Member for Procurement at AUDI AG. 

“On our global growth path, we will also utilize the potential of high added value in Brazil. So as well as the Audi A3 Sedan, we will soon also produce the Audi Q3 in Curitiba and will procure as many components as possible locally.”

The Audi A3 Sedan 1.4 TFSI Flex produced in Curitiba is the first Audi model with a flex-fuel engine. These engines can operate on gasoline, ethanol or both fuels at the same time. Brazil is the world’s biggest market for flex-fuel engines. 

More than 90 percent of cars newly registered are fitted with this technology. Audi will deliver to customers the first A3 models with the 1.4 TFSI flex-fuel engine in November 2015. 

“With local production of the Audi A3 Sedan and – a few months later – the Audi Q3, we will be ideally positioned to fulfill the wishes of our Brazilian customers” stated Jörg Hofmann, CEO of Audi do Brasil. “

Since the market launch of the A3 Sedan in 2014, we have doubled our sales volume in Brazil and are the market leader in this segment. This is a strong confirmation that we have chosen the right model for Curitiba.”

Audi is continuing along its path of international expansion with the plant in Brazil. In 2016, the brand with the Four Rings will open a second Audi plant in the Americas, in San José Chiapa, Mexico.

Mercedes readies all new Brazilian plant for C-Class and GLA-Class production.

• Start of production with the C-Class in the first quarter of 2016
• Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management: “Local production will even better allow us to tap the potentials of the emerging Brazilian market and to respond more flexibly to the wishes of our customers.”
• Philipp Schiemer, President of Mercedes-Benz do Brasil and CEO Latin America: “With the new Mercedes-Benz plant in Iracemápolis, we will be the only company producing the full vehicle range in Latin America – from passenger cars and vans to trucks and buses.”

Mercedes-Benz has celebrated the groundbreaking ceremony for a new passenger cars plant in Brazil and thereby continues to further expand its global production network. The new Mercedes-Benz plant in Iracemápolis near São Paulo will start production of the C-Class in the first quarter of 2016, and production of the GLA compact SUV will follow in the middle of the year.

“Local production will even better allow us to tap the potentials of the emerging Brazilian market and to respond more flexibly to the wishes of our customers. In the first stage, we are aiming for an annual capacity of 20,000 vehicles. If the market will develop as hoped for, the plant has the potential for a further significant expansion in the future,” said Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Supply Chain Management, on the occasion of the groundbreaking ceremony. 

The event was attended by numerous guests of honor from the areas of politics, administration, and economy as well as Philipp Schiemer, President of Mercedes-Benz do Brasil and CEO Latin America, and Dimitris Psillakis, Head of Passenger Cars Sales, Mercedes-Benz do Brasil.

Mercedes-Benz is investing a total of BRL 500 million in the Iracemápolis plant with an annual capacity of 20,000 vehicles. Until the start of production, about 600 new jobs will be created at the plant. In addition, some 3,000 jobs are expected to be generated in the region predominantly with suppliers and service providers.

“With the new Mercedes-Benz plant in Iracemápolis, we will be the only company producing the full vehicle range in Latin America – from passenger cars and vans to trucks and buses. The new plant in Iracemápolis is further proof to our commitment to Brazil. It also demonstrates we keep on investing to fulfil the wishes of our customers in the best possible manner. We are positive about the potentials of the Brazilian passenger cars market,” said Philipp Schiemer.

In terms of selection and recruitment of its employees, Mercedes-Benz is cooperating with SENAI, the Brazilian national service for industrial training, which has more than 800 training centers nationwide. SENAI has set up a new training center in Iracemápolis that will start training in the first half of 2015 already. The recruitment process with a focus on the Iracemápolis region will start in the second quarter of 2015.

“Together with SENAI, we want to recruit the best people for our plant. Additionally, we will send selected employees to our existing plants in Juiz de Fora, Germany, Hungary, and India, for targeted trainings. With this, we are ensuring the high Mercedes-Benz quality standards,” explained Markus Schäfer.

The Iracemápolis plant’s level of automation will be significantly lower than in traditional Mercedes-Benz plants. “Machines don’t develop, build, or sell cars –people do. That’s why our focus is on our employees. With this approach, Iracemápolis will be one of the most flexible plants in our global production network, indicating our future trend,” said Schäfer.