After Mercedes, Audi Expected to Close Production in Brazil

With no clear definition of the sector's new industrial policy for small volumes, Volkswagen's luxury brand may close its assembly line in Paraná.

RIO DE JANEIRO, BRAZIL - After Mercedes-Benz officially announced an end to car production in Brazil, Audi should be the next to disable its assembly line in Paraná state. The reason is essentially the same: the end of incentives for local manufacture of luxury cars.

Premium automakers - Audi, Mercedes and Jaguar Land Rover - settled in the country soon after the announcement of Inovar-Auto, a federal government program that established several rules for the sector. The main one raised the Tax on Industrialized Products (IPI) for imported cars by 30 percentage points.

Currently, Audi no longer produces the A3 Sedan . . .

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