Audi, Cromodora Reach Agreement on New Wheel Plant in Eastern Europe
January 16 2020 - 4:58AM
Dow Jones News
By Pietro Lombardi
Luxury-car maker Audi AG (NSU.XE) and Italian wheel maker
Cromodora have reached an agreement regarding a new wheel plant in
Eastern Europe, Audi said Thursday.
The Volkswagen AG (VOW.XE) unit said the cooperation will last
up to 10 years. Under the agreement, Cromodora will build the new
plant exclusively for Audi and the Volkswagen group, with
production expected to start in 2023.
Audi is guaranteeing its partner that it will source its wheels
from Cromodora for a specified period of time.
"For both partners it is equally important to make production
highly cost-efficient. Audi and Cromodora have therefore agreed
transparent, optimized cost structures. Risks are shared by the two
partners, for example if the costs of raw materials rise," the
German company said.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
January 16, 2020 05:43 ET (10:43 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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