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Audi $1.3 Billion Mexico SUV Plant Aimed at Unseating BMW: Cars

Among the dry, scrub-covered hills outside the Mexican town of San Jose Chiapa, a plot of land the size of 45 football fields will soon give Volkswagen AG a boost in its effort to become the world’s biggest automaker.

There, executives from VW’s Audi luxury unit tomorrow plan to break ground on a $1.3 billion factory with a capacity of some 150,000 cars a year. With its German facilities running flat-out, the plant will be instrumental in Audi’s push to topple Bayerische Motoren Werke AG as the leading auto brand for wealthy drivers.