The SEAT in Martorell, Spain will be the production site for the new Audi Q3. Manufacture will begin in 2011 with an annual production capacity of up to 80,000 units.

Rupert Stadler, Chairman of the Board of Management at AUDI AG, said: ‘This decision enables Audi to continue its strategy of growth and internationalization. Following in-depth consideration of all relevant factors and an extensive international comparison of various sites, we selected Martorell.’

He added: ‘We are counting on this Spanish site’s efficiency, the excellent quality of the Production department, and its highly trained staff. We will use the Group’s synergies to sharpen our competitive edge and help protect around 1,200 jobs. The decision furthermore safeguards workplaces at other Audi locations.’

Due to the Audi Q3 being manufactured in Spain, a decision about production in the USA has been postponed.

Mr. Stadler said: ‘We will systematically explore our options in the context of the current market crisis. Audi is in a good position. There is currently no urgent need to select additional sites.’

The Q3 will blend a compact car design and driving dynamics with an SUV’s spaciousness and versatility.

The market launch of the Audi Q3 is scheduled for 2011.