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Volkswagen’s planned U.S. factory is likely to also make upscale Audis and Porsches, VW of America CEO Stefan Jacoby said Thursday.

In an interview with USA TODAY, Jacoby said of the planned U.S. plant: “For Audi and Porsche, it would be an opportunity to add on units” as German parent VW AG seeks to triple U.S. VW and Audi sales to a million total by 2018 and boost sales dramatically worldwide.

Porsche is VW AG’s biggest shareholder, with 31% and has been involved in many joint ventures with VW. The VW and Audi brands are among a VW AG portfolio ranging from low-price European-market Seat and Skoda to high-end Lamborghini and Bentley.

The U.S. factory, Jacoby said, will be built in Tennessee, Alabama or Michigan. “July, the latest, we will make our decision,” he said. He said the factory should be in operation by the end of 2010, an ambitious schedule for a plant not yet under construction.

A U.S. factory would avoid the currency-exchange whammy, in which the falling U.S. dollar has made imported goods more expensive. VW, a mainstream brand, has less room to boost prices to make up the difference than luxury brands such as Audi.

According to a report from Germany published Thursday by trade magazine Automotive News, Porsche denied it plans to build its current Cayenne SUV in VW’s U.S. plant, but it would not comment on the next-generation SUV or other Porsches.

Porsche and Audi buyers value the German heritage of those brands and might balk at U.S. versions. “My instinct is that it would annoy Porschephiles more than Audiphiles. I think the Porsche guys might get up in arms a little bit,” says Stephanie Brinley, senior manager of product analysis for marketing consultant AutoPacific.

VW pioneered what are called transplant factories in the USA, building about 1 million cars at Westmoreland, Pa., from 1978 to 1988.

Jacoby, who took over U.S. operations on Sept. 1, said VW will “custom tailor” VWs for U.S. tastes. He said U.S. buyers appear to like “soft-riding” cars that don’t need high top speeds because of “speed limits that are much more rigorously enforced” than in Germany.

But he emphasized that U.S. VWs won’t be sloppy-handling or sluggish.

Jacoby acknowledged that VW “did a lot of things wrong” to earn a U.S. reputation as unreliable and costly to maintain. But he said improved quality — “our warranty costs are down considerably” — and a new three-year free maintenance offer should raise perceptions.

AUDI AG has received the renowned Thatcham Award for the second consecutive year, in recognition of the extensive theft protection featured throughout its model range. This prize spotlights the premium cars from Ingolstadt as Europe’s best-protected cars when it came to thefts in 2007.

Audi’s innovative electronic immobilizer helped avoid more thefts during the past year. German insurance companies are rewarding this lowered risk: among the premium brands, the majority of Audi models have received the most economical coverage classification in their respective segments.

The British Thatcham institute is one of Europe’s leaders in evaluating the quality of car security systems. Experts use a specially developed test method and award up to five stars for security against break-in and theft. Thatcham awarded AUDI AG the prize for the maker of the cars with the best security protection and honored five Audi models individually in 2007. The Audi TT Roadster, Audi S8 and Audi Q7 each took first place in their respective categories.

AUDI AG develops its anti-theft systems with an interdisciplinary team of specialists. The innovations developed by this team, which are used in all new Audi models, include extensive protection of all doors plus a sophisticated immobilizer with component protection that runs throughout the entire car. These complex technologies have led to a continuous decline in thefts of Audi cars in Germany over the past few years.

Aside from the excellent anti-theft security, Audi customers have a further advantage: the low risk of theft contributes to a particularly economical insurance coverage classification. This generally makes owning an Audi less costly than owning a car from one of the company’s competitors.

Courtesy: Courtesy: Audi AG, Germany

AUBURN HILLS, Mich. - Audi of America, Inc. announced today a motorsports gathering in partnership with Strong Audi in downtown Salt Lake City on Thursday evening, May 15, 2008. Local customers and prospects will be hosted to welcome world champion race car drivers Emanuele Pirro and Frank Biela.

In preparation for Sunday’s American Le Mans race at Miller Motorsports Park, the Audi drivers have already hit the ground running to practice for the race and also interact with local Audi customers and race fans to share their enthusiasm for TDI clean diesel racing and road technology. Continue reading ‘Audi of America joins with local partner strong Audi’ »