VW's Audi May Delay Decision on U.S. Expansion

MUNICH - November 28, 2008; Irene Preisinger writing for Reuters reported that Volkswagen's premium car unit Audi was upbeat on November sales, but could delay a decision on whether to build cars in the United States, where demand has dropped sharply, its chief executive said.

Audi CEO Rupert Stadler said late on Wednesday it was not yet certain whether the company would decide in early 2009 on whether to build its own cars in the United States.

Stadler has repeatedly said he was looking into cooperation with parent Volkswagen to build vehicles in the United States, with a decision expected next year. Earlier this year he said the company would benefit "tremendously" from a U.S. production site.

Carmakers in the United States have been hurt by a slide in demand for cars in the world's biggest economy. U.S. vehicle sales plunged in October, with General Motors Co's (GM.N: Quote, Profile, Research, Stock Buzz) sales down 45 percent, Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) off 30 percent and Toyota Motor Co (7203.T: Quote, Profile, Research, Stock Buzz) down 23 percent.

Stadler also said he was no longer certain whether Audi could reach a target of selling 200,000 cars a year in the United States by 2015, though this remained a long-term goal.

"We can judge whether 2015 and 200,000 units are still accurate in one or two years," Stadler said.

For the current month, he said he was very confident in terms of unit sales.

Stadler said next year would be very difficult, but he would not give a concrete forecast for the year until February. The prospect of having eight new products on the market provided some confidence, he said.

Writing by Maria Sheahan; Editing by Jon Loades-Carter for Reuters