Audi to open factory in Brazil

RIO DE JANEIRO -- Audi plans to open a factory in Brazil and manufacture two models of cars, the company said Tuesday.

The company will produce Audi Q3 and A3 Sedan at the new factory in Sao Jose dos Pinhais, Parana state, in South Region of Brazil. The A3 Sedan will be launched in 2015 and the Q3 in 2016.

The upcoming world sporting events in Brazil, the 2014 FIFA World Cup and the 2016 Summer Olympics, are a practical consideration when Audi chose the site.

Audi invests an estimated 500 million reals ($222 million)in the new factory.

Audi sets its sales goal in Brazil at 30,000 cars per year by 2018,counting in both imported units and those produced in the new factory.

The announcement was made after a meeting between Audi AG's chairman Rupert Stadler and Brazilian President Dilma Rousseff early Tuesday in Brasilia.

Stadler said Brazil's current economic situation and its outlook forecast a future growth in the car market.

"The market for luxury cars in Brazil is still small, but Audi believes it will grow significantly in the next few years," he said. "I hope the Brazilian economy keeps growing as it has been growing."

Audi estimates that the consumption of luxury cars in Brazil will rise 170 percent by 2020.

The company aims to become Brazil's top car manufacturer in the premium market.