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Audi Q3 Bound for Production in 2011

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    Audi's Q3, a BMW X1 fighter, was presaged by this 2007 Cross Coupe Quattro concept. The production model will be built in Spain, not the U.S., Audi says. | September 15, 2009

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Audi Q3 Bound for Production in 2011

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    INGOLSTADT, Germany — The Audi Q3, the smallest SUV in the German automaker's lineup and a key competitor to the BMW X1, will be produced starting in 2011, Audi AG said in a statement issued on Wednesday. At one time, the U.S. had been considered as a possible manufacturing site for the Q3, but Audi said a decision about production here has been postponed.

    The Q3, which slots in below the Audi Q5, will be built at a Seat site in Martorell, Spain. Audi describes the Q3 as a "coupelike five-door SUV with seat positions, wheel size and ground clearance characteristic of a typical SUV." The statement was accompanied by an image of the Audi Cross Coupe Quattro concept, a precursor of the Q3 that made its debut at the 2007 Shanghai Auto Show.

    Audi said it will invest around $390 million in the Martorell plant and will produce about 80,000 units of the Q3 each year. Audi said the Martorell selection "gives us additional flexibility regarding future decisions about products." The global economic crisis apparently put the brakes on additional production in the U.S.

    "We will systematically explore our options in the context of the current market crisis," said Audi CEO Rupert Stadler in a statement. "Audi is in a good position. There is currently no urgent need to select additional sites."

    Inside Line says: Audi continues to expand its SUV portfolio but is still reluctant to build any of its vehicles in the U.S. — Anita Lienert, Correspondent

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